The Long Term Investor

BIG story of the day. YES......the markets do NOT go straight up ALL the time, every day. Dips and dives and profit taking, and corrections are part of the NORMAL investing and market process. So....no concern in the slightest today. ACTUALLY......I would have no concern if the markets decided to drop for weeks. We are back in a normal market environment.

Oh, yes......back to the BIG news:

Nasdaq crosses 10,000 for first time

https://www.foxbusiness.com/markets/us-stocks-june-9-2020

(BOLD is my opinion OR what I consider important content)

"U.S. equity markets were mixed Tuesday as the Nasdaq crossed the 10,000 level for the first time and investors took profits in some of the high-flying companies that netted a windfall on optimism surrounding the reopening of the U.S. economy.

The tech-heavy Nasdaq reversed an early loss of 0.62 percent, on its way to briefly eclipsing the 10,000 level for the first time. The Dow Jones Industrial Average fell as many as 421 points, or 1.53 percent, before paring its losses while the S&P 500 dropped 1.22 percent."

MY COMMENT

I mentioned in here a week or two ago that we would see some profit taking. That is NORMAL market behavior. As to the NASDAQ......it is leading the way for the other averages. NEW ALL TIME HIGHS will come........and.....probably sooner than most people expect.

 

NICE.......account was in the GREEN today. Obviously beat the SP500 to be GREEN when the SP500 was RED. TODAY, I got the SP500 by 1.27%. Thats a big win for one day.......compliments of my very specific holdings.

 

I would not be surprised if we are at the start of a correction or see one some time soon. NOT because of the virus......actually.....NOT.........due to anything business related or investment related. It will be because we......as a country, as a society, as a culture,......are in a BIG MESS right now.

That is ALL I will say in a public forum.

 

For ANY that believe we are going to see some sort of inflation problem due to the stimulus........I dont think so. I see many comments......as has been the norm for the past 10 years......all over the internet talking about the coming inflation or even......GASP......hyper inflation. My opinion......NOT A CHANCE:

Weak demand keeps U.S. inflation subdued

https://www.reuters.com/article/us-usa-economy/weak-demand-keeps-u-s-inflation-subdued-idUSKBN23H2FN

(BOLD is my opinion OR what I consider important content)

"WASHINGTON (Reuters) - U.S. consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic.

But with nonessential businesses reopening after shuttering in mid-March to slow the spread of COVID-19, deflation, a decline in the general price level, is unlikely. Still, the report from the Labor Department on Wednesday suggested the disinflationary trend could persist for a while.

That together with a struggling labor market could see the Federal Reserve maintaining its very accommodative monetary policy stance for some time while nursing the economy back to health. Officials from the U.S. central bank were wrapping up a two-day policy meeting on Wednesday.

“We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack,” said Jim O’Sullivan, chief U.S. macro strategist at TD Securities in New York. “The trend in inflation was already too low from the perspective of Fed officials. The latest data help the case for Fed officials to send a dovish signal today.”

The Labor Department said its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Prices were held down by a 3.5% drop in the cost of gasoline, which followed a 20.6% plunge in April. That offset a 0.7% increase in the cost of food last month. Food prices jumped 1.5% in April.

Prices for food consumed at home rose 1.0% after surging 2.6% in April. The cost of beef shot up a record 10.8% in May, reflecting shortages as a result of COVID-19 infections at meat processing plants. Consumers also paid more for dairy products, fruits and vegetables. But cereals and bakery products were cheaper last month.

In the 12 months through May, the CPI edged up 0.1%. That was the smallest year-on-year rise since September 2015 and followed a 0.3% increase in April.

Economists polled by Reuters had forecast the CPI would be unchanged in May and gain 0.2% year-on-year.

The National Bureau of Economic Research, the arbiter of U.S. recessions, declared on Monday that the economy slipped into recession in February.

The Labor Department said in-store data collection had remained suspended since March 16 because of risks of exposure to COVID-19. The department added that data collection last month was also impacted “by the temporary closing or limited operations of certain types of establishments,” leading to “an increase in the number of prices being considered temporarily unavailable and imputed.”

Stocks on Wall Street were mixed as investor attention shifted to the Fed’s first projections on the economy post-coronavirus outbreak. The dollar fell against a basket of currencies. U.S. Treasury prices rose.

RENTS INCREASE
Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010.

May marked the first time that the core CPI has dropped for three consecutive months. Underlying inflation was depressed by continued decreases in the costs of motor vehicle insurance and apparel. Airline fares fell 4.9% and used cars and trucks prices dropped 0.4%.

The cost of hotel and motel accommodation dropped 1.8% last month after record 8.1% plunge in April.

Those price declines offset a 0.3% increase in owners’ equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home. This rent measure gained 0.2% in April, likely reflecting forbearance agreements between landlords and tenants who have lost their jobs or have had their hours cut because of the global pandemic.

The economy has shed nearly 20 million jobs since March.

Healthcare costs increased 0.5% in May after a solid 0.4% rise in April. Consumers paid more for household furnishings, new vehicles, alcoholic beverages and education.

In the 12 months through May, the core CPI rose 1.2%, the smallest gain since March 2011. The core CPI increased 1.4% year-on-year in April.

The Fed tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index increased 1.0% on a year-on-year basis in April, the smallest advance since December 2010. May’s core PCE price index data will be released at the end of the month.

“The weakness in the economy should keep downward pressure on inflation over time and we expect softness in the core measures to be reported for upcoming months,” said Daniel Silver, an economist at JPMorgan in New York. “But we think that we probably have moved past the largest sequential monthly declines in inflation that came shortly after the virus spread.""

MY COMMENT

I BELIEVE that we are in for a BIG surprise as people and economists and others come to realize that we are NOT facing an increase in inflation over the next 6-12 months. I believe that the WORLD and the USA are STILL in a very dangerous deflationary environment that will CONTINUE to be the norm for at least the next 1-2 years.......if not longer. We have been in this situation SINCE the near banking collapse of 2008/2009.

Will this change anything for me as a LONG TERM INVESTOR........NO. I will continue to be fully invested as usual for the long term. BUT......I WILL watch with great interest.

 

In spite of EVERYTHING......I will take what the markets are willing to give me. I checked my primary account about 30 minutes ago. I was BEATING the SP500 by about 1.15%. I was in the GREEN with nine of my eleven holdings being positive. The BIG money was in AMZN......UP $57 at about +2.17%.............MSFT......UP 2.36%........AAPL.....UP 2.28%. Sort of like yesterday......in spite of the averages being down yesterday I was UP nicely.

ALL the accounts that I manage are at a nice high right now. In fact, they have ALL been UP for the past 8 days in a row.....in spite of the general averages being down the past two days.

I decided to take advantage of this by SELLING $500,000 in one account that I manage for an older family member. They are going to finance a home purchase for another family member about a month from now. They will take back a note and deed of trust at 4%. A.......WIN/WIN......since it makes it easy for the family member doing the home buying.......and.....provides some long term interest income for the older family member. In the CURRENT ENVIRONMENT.....I wanted to cash in the $500,000 NOW. I am NOT willing to take short term stock market risk with money that will be needed in about 3-4 weeks.

The DOWNSIDE for me..........now I have to be involved with the details of the escrow and to make sure the language in the note and deed of trust is what we want and has been agreed to. I will........ALSO.....probably get in on the "fun" of helping coordinate and participate in the packing and moving. NO......they are not crazy enough to do the moving themselves. They will hire two trucks and four men to take care of that stuff. OH WELL.......

 

Hey Phil.......that is about right for many today. With the internet and everything being "social media" that takes and lasts about 30 seconds and than moves on......being a long term investor means about a week or two. I REMEMBER when short term money was money that might be needed in.......3-5 YEARS. NOW......too many people dont realize the risk they are taking with their money.

GLAD I happened to sell that $500,000 yesterday. As I said than......I will NOT gamble short term money in the markets. I am sure the family member is very pleased if they are watching the markets today. That money will be used to finance a mortgage on a house at the start of July. DEFINITELY short term money. I am VERY confident about the direction of the markets to year end and beyond.......HIGHER. As to the short term 2-6 months.........NO ONE KNOWS. With the virus and everything else that is happening right now in the short term STOCKS are at the MERCY of outside events and happenings that make logical and rational evaluation impossible. Of course.......the short term.....even in the best of times is impossible to anticipate by investors. That is why market timing and trading for 99.9% of ALL that try them result in FAILURE.

 

What could possibly go wrong..........NO.......this is NOT going to end well:

Opinion: Low-information ‘investors’ rule the stock market — at least until they lose every cent

https://www.marketwatch.com/story/l...very-cent-2020-06-11?siteid=yhoof2&yptr=yahoo

(BOLD is my opinion OR what I consider important content)

"In 1929, the story goes, Joseph P. Kennedy, patriarch of the Kennedy clan, went for a shoeshine not far from his Wall Street office. Kennedy was stunned when the shoeshine man gave stock tips to him, a leading trader. He immediately returned to his office and aggressively short-sold stocks, making a fortune in the Great Crash.

This is probably an apocryphal tale that points to a larger truth: When even shoeshine men are so confident in their bullishness they give stock tips to the pros, it’s time to run for the hills.

This week we’ve seen plenty of signs of this. As the Nasdaq Composite COMP, -5.26% hit all-time highs, briefly closing above 10,000 (nearly double its bubble top from the year 2000), and the Dow Jones Industrial Average DJIA, -6.89% and S&P 500 SPX, -5.89% both came within shouting distance of their February record peaks, day traders and newbies emerged, proclaiming their stock-picking genius.

This testosterone-driven overconfidence — and research shows men are more reckless investors than women — has been most pronounced on Robinhood, the commission-free stock trading app preferred by millennials who can make all the trades they want at the tap of their thumbs.

The tale of Robinhood
According to Crunchbase, the Menlo Park, Calif.-based brokerage has raised $1.2 billion altogether. On the strength of three million new customers in the first quarter, it just raised $280 million in a late funding round led by Silicon Valley heavyweight Sequoia Capital. Robinhood has more than 10 million customers whose average age is 31.

It has been having an outsized impact on stock trading. An analyst at Deutsche Bank recently examined Robinhood trading data and found that small investors were behind much of the recent buying in the stock market, so that what we used to call the “smart money” is “now chasing” the day traders. Talk about the caboose pulling the train."

Gone are the days of COVID-19 lockdowns and fears of bodies piling up in emergency rooms. Long forgotten are the 40 million unemployed Americans, the 40% of businesses that may not reopen and the “long road” to recovery that a gloomy Federal Reserve Chairman Jerome Powell laid out in his news conference Wednesday. And don’t even think about the new wave of coronavirus cases and hospitalizations we’re seeing in at least a dozen U.S. states. Oh, no, instead the day traders are sampling and remixing those hits of the 1930s, “We’re in the Money” and “Happy Days Are Here Again.”

And these mini-Masters of the Universe aren’t just buying the Apples AAPL, -4.80% and Teslas TSLA, -5.09% of the world; they’re gobbling up stocks of bankrupt companies like Hertz HTZ, -18.25% and those whose businesses are in deep trouble, like American Airlines Group AAL, -15.51%. Both of those stocks and others beaten down badly in the coronavirus bear market have rallied sharply over the past few weeks.

Better than Buffett?
No doubt these very astute people have done deep dives into balance sheets, loan covenants and capital structures the way distressed debt and deep value investors do to make sure they’re protected on the downside. Oh, wait. Screw the guardrails. Damn the torpedoes. Traders on Robinhood and other instant-trading platforms are wagering hundreds maybe a few thousand bucks at a time and are beating the pants off the pros.

One leading day trader who’s particularly proud of himself is Dave Portnoy, the successful founder of Barstool Sports, who thinks his prowess over the last, oh, six weeks or so, has made him better than … Warren Buffett.

“I’m the new breed. I’m the new generation,” he crowed. “There’s nobody who can argue that Warren Buffett is better at the stock market than I am right now. I’m better than he is. That’s a fact.”

This column has recently taken Buffett to task for his performance over the past decade. Three of his recent investments lost at least $7 billion, and he clearly sold airline stocks at the bottom. But really, Dave, really? He sounds like he’s auditioning to host a revival of “The Apprentice.”

The day trading is definitely a sign of the times. As Anthony Denier, CEO of trading platform Webull, told the New York Post: “We’re all home. Some people are making bread, and some are saying, ‘Hey, how can I make the stock market work for me?’ And with the Fed [pumping money] into the markets, they’re thinking ‘How can I lose?’ ”

How? Let me count the ways, starting with today, with the Dow down 1,862 points, the biggest drop since the dark days of March. Who knows if this is profit taking or whether we’re heading for another leg down in stocks? But some of us remember the 1990s, the days of theglobe.com and “boot your broker” and guys in their basements trading Yahoo stock dozens of times a day. You can “OK boomer” me all you want, but I’ve seen this movie many times and it never has a happy ending.

MY COMMENT

"I am the new breed....I am the new generation".............right. As if those of us that have been investing for 40 or 50 years have not heard that before. About the same as......."this time it is different". I would not get too excited about being the new breed and generation..........because you are......same as the old generation. YOU did not somehow overnight create new markets and new market rules. NOT......that I really care if someone wants to throw their money away. It will at least be interesting to watch.

REMINDS me of the old stock XLA. Not sure it is even still around. It was basically a penny stock that got some traction when a writer on the old MSN boards.........Markman......in my opinion, touted it. It took off and on the old MSN money boards there was even a board called the "XLA MILLIONAIRES BOARD". A lot of people were jumping into the stock, MOSTLY young and inexperienced traders that were going to make a fortune. It was geting so much attention that I got interested and researched the company and stock. In my opinion.....there was NOTHING there.....simply a typical penny stock that was being driven up in price before the BIG BOYS dumped their shares. LOTS of daily press releases....but all smoke and no fire.

I put up a long post on the XLA board outlining what I was seeing and the fact that i would bet that one year from than the stock would be worthless. There was a large group on that board and they TRASHED me completely. I didnt care...I thought it was funny and knew they were going to get screwed. SURE ENOUGH.......a year later it was worthless and the board was dead. NOT a single XLA millionaire to be found.

It will be interesting.......dont bet the farm.

 

HERE is another little article on the FAD of the moment in the investing world. HOWEVER.....I dont discount the impact that this might have on the markets:

Barstool Sports’ Dave Portnoy Is Leading an Army of Day Traders

https://finance.yahoo.com/news/barstool-sports-dave-portnoy-leading-121208707.html

(BOLD is my opinion OR what I consider important content)

"Barstool Sports’ Dave Portnoy had bought just one stock in his life before the quarantine hit. When the country shut down in March, canceling sports and sports betting, the founder of the brash media empire considered sexist by some dusted off his old E*Trade account and started day trading.

“With the volatility, it is kind of like watching a sports game,” said Portnoy, 43, who started live streaming as “Davey Day Trader Global” to his 1.5 million Twitter followers with the caveat: “I’m not a financial advisor. Don’t trust anything I say about stocks.”

Despite the obligatory warning, Portnoy has touted stocks like InspireMD Inc. and Smith & Wesson Brands Inc., while dissing the acumen of Warren Buffett, the world’s fifth-richest person and widely regarded as one of the greatest investors ever. “I’m sure Warren Buffett is a great guy but when it comes to stocks he’s washed up,” Portnoy tweeted Tuesday. “I’m the captain now.”

Portnoy and his ilk have been part of one of the greatest rallies in history, adopting as a mantra the online slogan of “stocks only go up!” Market watchers are being forced to ask to what degree retail interest has become a self-fulfilling prophecy in many parts of the market -- and what dangers it poses for its sustainability. Thursday’s rout, the deepest in three months, offered a reminder that stocks do, in fact, fall, though equities rebounded in trading Friday.

Millennials and Gen Zs, the target audience of Barstool content, have long been under-invested in the stock market, said Julian Emanuel, chief equity and derivatives strategist at BTIG LLC.

That’s changing. Stuck at home with plenty of free time, government stimulus checks, no sports to bet on and, for better or worse, a figure like Portnoy turning investing into entertainment, more and more young people are wading in for the first time.

‘Perfect Storm’

“It’s really been a perfect storm,” said Nate Geraci, president of investment-advisory firm the ETF Store, who views Portnoy as the millennial Jim Cramer, the CNBC personality. “Investors are seeing firsthand the thrill of victory, the agony of defeat, and he’s doing it with large sums of money, so I think for younger investors, that’s really enticing.”

In January, casino company Penn National Gaming announced it had bought a stake in Barstool for $163 million in cash and stock. Portnoy, who estimates his net worth at more than $100 million, said he’s put $5 million into his day-trading account so far.

“I’m a little surprised that it’s become pretty well known within the financial community,” he said. “That’s kind of our target audience regardless of what we’re covering and I think Barstool was popular in those circles to begin with.”

Portnoy, a Massachusetts native with a degree in education from the University of Michigan, founded Barstool in 2003 as a weekly newspaper about gambling with the tagline: “By the common man, for the common man.” It has since grown into a media empire synonymous with male frat culture.

It has also had its fair share of controversies.

ESPN Cancels

In late 2017, ESPN canceled a show hosted by some Barstool personalities following social-media complaints that the website was insulting to women. It has a daily feature with photos of a scantily clad woman called Smokeshow and in the past rated the attractiveness of female teachers who were charged with having sex with their students. The company recently reached a settlement with the National Labor Relations Board to delete tweets in which Portnoy threatened to fire people who talked to union activists.

Portnoy’s livestream Davey Day Trader Global, or DDTG, gets hundreds of thousands of viewers on Twitter alone. In the videos, Portnoy mostly half-yells into a microphone as he goes through his portfolio. Sometimes he diverts into stream-of-consciousness asides.

“I bought these sunglasses today,” Portnoy said in one video, putting on a pair of reflective aviator sunglasses. “Are these d****bag sunglasses? I think these may be d****bag sunglasses.”

DDTG isn’t that different from other Barstool blogs and shows like the raunchy podcast Call Her Daddy. The live streams are interspersed on Portnoy’s timeline with videos of his longer-running show Barstool Pizza Reviews.

Scott Nazareth, a 29-year-old day trader from Toronto, said he’s a fan of Portnoy’s videos and believes older investors such as Buffett are missing opportunities in technology and airline stocks.

“I kind of make fun of some of these investors,” Nazareth said of Buffett. “They just have a hard time understanding the new normal, the new business models.”

With tens and sometimes hundreds of thousands of people watching, there’s some concern that people will take Portnoy’s advice to heart. But Portnoy said he’s made it clear to his viewers not to invest money they can’t afford to lose.

“I’m not babysitting our readers,” said Portnoy. “People got to be responsible.”

His plugs appear to have had some effect, though. On Wednesday, Portnoy mentioned penny-stock InspireMD, a company that makes products for vascular procedures. The stock had already seen elevated volume since June 2, when the firm announced it would offer an additional 22 million shares. Still, volume surged to an all-time high of 52 million shares after Portnoy’s exhortations.

‘Hype Videos’

After tweeting a video questioning Buffett’s decision to get out of airlines -- where Portnoy doubts the wisdom of “94-year-old guys who live in Nebraska” -- volume in JETS, an exchange-traded fund tracking airlines, exploded. The 30-day average volume in the ETF went from $45 million to about $200 million. Portnoy’s video has more than 1 million views.

“I’ve never seen a video quite like that outside of hype videos in football,” said Eric Balchunas, an ETF analyst for Bloomberg Intelligence. “The financial industry is not used to that kind of thing.”

Buffett, who’s actually just 89, didn’t respond to a request for comment through a spokeswoman.

With brokerages offering commission-free trading, “the barriers to entry are essentially zero and the cost to transact is essentially zero,” Emanuel said.

Young people, who use their phones for everything, are comfortable dealing with trading apps, and companies like Robinhood Financial appeal to first-time investors with referral promos and free stocks when they sign up.

“You look at a platform like Robinhood, in many ways those platforms have game-ified investing,” Geraci said.

New Accounts

Purdue University student Cameron Coleman, 20, started investing about a month ago after a friend shared his Robinhood referral link. Coleman had been an avid sports better and said he turned to day trading as an alternative during quarantine. He now tracks stocks on two computer monitors he typically uses for gaming and his initial $50 investment was up to $260 as of Tuesday.

Robinhood added more than three million funded accounts in the first four months of 2020, and half of customers who opened accounts this year said they were first-time investors, according to Nora Chan, a spokeswoman for the Menlo Park, California-based firm. E*Trade Financial Corp. had 329,000 net new accounts in the first three months of the year, with 260,000 added in March alone, the firm said in its first-quarter earnings statement. That was more than the company’s previous best annual net record.

While day trading can be risky and Portnoy might not be the best role model for young investors, Emanuel and Geraci said they think younger investors entering the market is positive for the long-term.

“The danger to the accessibility of it is very clear because you are bringing people in who may not be terribly qualified,” Emanuel said. “You learn more when you’re losing.”

Coleman said he doubts he would have started investing if it weren’t for the pandemic shutdowns. “I probably would have just continued sports betting because I’m better at that,” he said.

Now that he’s begun, Coleman said he plans to continue. “But I’ll switch to a more buy-and-hold strategy.”

MY COMMENT

YES.......welcome to ANARCHY or MOB RULE INVESTING. Actually......I welcome it for many reasons.

1. It is introducing young people to investing. Many are doing very small amounts. AS USUAL....there will be the CRAZY few that BET THE HOUSE and lose big.

2. It will drive the AI trading programs CRAZY. I dont believe there is any way for an AI program to anticipate or keep up with a FLASH MOB. ANYTHING that drives the quants and the AI traders crazy is a good thing in my mind.

3. I have......NO CLUE....what this FLASH MOB of young traders will do to Technical Investors and Technical Traders. They are in about the same boat as the Quants. ALL the various indicators and "things" they use will likely be overwhelmed by this new BIG influx of day trading.......micro......investors.(although my personal opinion is that none of this technical stuff works anyway)

4. For LONG TERM investors I believe it will be a good thing. I believe this will cause faster stock appreciation over the long run. I believe this will serve to kick the built in historic bias of the markets to GO UP.......up a gear or two over the long term.

5. The SCARY SIDE of things........not really.......it will just seem that way.....is the impact I see on market volatility. With a HUGE HERD of young day traders treating stock investing like video gaming or sports betting......EVERYTHING.....will be amplified. Corrections will happen and recover faster. Down days will be worse and up days will be better. This will scare many people......BUT.....in the end all that frantic moving around of the markets will end up looking about like we are used to now. It will be a lot of frantic activity and day to day volatility but.....in the end.......NOTHING to worry about besides getting caught up in the whole short term thing.

6. AND the MOST IMPORTANT thing.......will be.........to STICK with being a long term investor. The way to avoid all the short term mania and erratic market behavior up and down will be to invest for the long term. I am talking 15, 20, 25, 30 years. As for me, I will also personally add to that.......being an.......all the time, fully invested......... investor. First, many of these people will convert to long term investing when they start to be using larger amounts of money, or, when they get married, or, when they have kids, or, need to plan for retirement, etc, etc, etc. That will bring a lot of capital into the markets that has to go somewhere. In fact they are bringing capital and liquidity in right now. ALL of their behaviors.......as I mentioned above.......will.......in my opinion........cause a little blip in the upward BIAS of the markets.......TO THE POSITIVE. LONG TERM investors will capture these little additional gains.

ANYWAY........it will be interesting to watch.........and see how much of a career I have as a FUTURIST.

 

Still active? This forum is totally active. It is the BEST money and investing forum I have seen or posted on. Welcome Gold Is Real Money. Feel free to post relevant content of any type.

Also welcome to Jose Diaz. I like your style "......." Hope you also contribute if you wish, ALL are welcome.

 

HERE is a devastating lesson that is relevant to some of the recent articles I have posted regarding young traders and Robinhood accounts. Of course, the people that SHOULD be learning from this will NOT have a clue that this information is relevant and important.

Heartbreaking story of rookie trader who racked up $700K in debt: ‘Finance isn’t worth losing your life over’

https://www.marketwatch.com/story/f...0-in-debt-2020-06-14?siteid=yhoof2&yptr=yahoo

I WILL leave it to any that are interested to read the story. HERE is the LESSON from what happened here:

"“Alex’s” story serves as a reminder that trading stocks can have devastating real-life consequences. This has perhaps never been more true than when it comes to using borrowed cash to leverage positions in a stock market where the Dow Jones Industrial Average can be down almost 2,000 points one session, then rebound nearly 500 points the next.

Inexperienced traders have been cited as a driving factor in the big bounce of the market’s late-March lows and the recent volatility. Deutsche Bank analyst Parag Thatte suggests that Wall Street professionals are being forced to chase amateurs who continue to bid up equities.

CNBC’s Jim Cramer on Friday also addressed the dangers of the current climate.

“It got too easy, and now we all have to suffer as the get-rich-quick crowd gets blown out,” he said on his “Mad Money” show, describing the current environment as one of “rampant speculation.”"

BE CAREFUL........young males. YOU are the primary risk group for CRAZY INVESTING MANIA.