7net11: Volatility is the Streets Friend

Started this post in the second quarter 2020....

I have said this from day one of COVID, "Wall Street loves this roller coaster ride!"  Volatility is the name of the game in retail trading and you have seen massive profits and rocketing valuations from retail investment platforms.

For example:

E-brokers TD Ameritrade, Interactive Brokers have sustained record retail trading volumes in the second quarter. Similarly, new e-broker Robinhood valuation soared to $11.2 billion in the second quarter.

What does this all mean for the little guy?  A mix of good and bad. the novice day trader probably lost and lost BIGLY!

2/8/21 update:  That said, I don't believe there is a "bubble" in the current overall market. The Fed will release stimulus, banks are solid and recovering, and the economy is slowly starting to re-awaken as evidenced by the slow and steady rebound of bank and oil sector stocks. 

The everyday investor should be aware of these two words. VALUE vs. GROWTH.  I attach the word "value" to companies that have a predictable path to consistent profitability and those sectors that show no path but future promise of "growth." This is key to makings good bets moving forward and require more in depth research.   

Be on the lookout for the Coinbase and Robinhood IPOS. The pricing of these IPOS and the feeding frenzy to follow will lend a clue as to how a supercharged tech/financial/fintech economy has evolved and the affect the overall economy. 

Please leave your comments in the COMMENT section and provide topics that you would like me to discuss and expand on. TY!