How Young Stock Market Bulls Are Beating Old Bears

Posted On June 23, 2020 3:04 pm
By: Steve Smith

Much ink has been spilled over how Robinhood traders, which has become short-hand for Millennium age or younger, who’ve enjoyed their first rush into investing, or shall we call it trading, by buying the dip at the depth of COVID-19 created sell-off. I, too have been guilty of glomming onto to Dave Portnoy and his band of merry traders because not only does it make for great content but the fact is they have been making a mockery of the market as a whole and targeting investment legends like Warren Buffet specifically, claiming he’s washed up 90 year man.

Millennials have been blamed for the ‘killing’ of a wide variety of products and industries. But, they may have just saved Wall Street, or at least given it a boost into the next iteration. In recent weeks, the old guard, from Bill Gross, Sam Zell, Jeremy Grantham, Carl Icahn, and Stan Druckenmiller have all made high profile media appearances stating their bearish case.

Meanwhile, Portnoy and his cohort are starting to get equal time on-air, show nothing but exuberance, often describing their process and experience with stocks as simply “fun’ and prices always go up.

As a peacemaker, I think both parties can be right. The elders may have simply succumbed to the fact as you get older your risk tolerance decreases, it simply makes sense to go into preservation mode as your life draws to a close. But more impactful in the decision making of becoming negative is the inability to keep up with technological changes in which to develop a new ‘blue sky’ vision within the investment landscape.

Whether it be in… Continue reading at StockNews.com

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.