Buying Stocks? Brace! Brace!
- The pain of the last bubble bursting has finally faded and been replaced by greed as retail punters watch everyone else mint fortunes by buying the dip and gambling with abandon at the casino's trendy tables: crypto, NFTs, Mega-Tech, EVs, uranium, etc;
- Prudence and caution (ie, holding cash in low-risk accounts) are thrown to the wind as the more money you put into the bet, the bigger the rewards;
- Punters realize the key to the really big gains is maxing out margin and leverage, preferably by foregoing owning the underlying equity in favor of options and futures contracts;
- Confidence in the Federal Reserve's godlike powers and determination to never let stocks decline more than a few percentage points over a few hours or days is off the charts;
- Confidence that this is a new era and so old rules no longer apply is in the stratosphere. Retail punters believe that cryptos, NFTs and blockchain are can't-lose bets as these are A) unstoppable and B) revolutionizing finance and the economy.