I take issue with the term "investing".
This author is not describing investing. The author is gambling.
Percentage changes are not reason to invest. They might be reason to take a bet, but to invest, you are considering what is causing those changes. You might be wrong, but you are at least considering some sort of evolutionary process. Time and magnitude are the kinds of things that you come up with if you are trying to invest.
Looks like this guys "investment strategy" was to buy the dip, which is just another form of being implicitly short volatility. This is definitely not investing but a bet on a reversion to the mean of low volatility. "BTFD" and other short vol trades have worked fabulously in the suppressed volatility environment of the last 10 years, but they have the potential to blow up rather spectacularly during large sigma events (the unwinding of the VXX being a great example.) There's a whole generation of "investors", like this guy, who are just short volatility traders and they don't even know it.
I heard the state of Delaware seized untouched amazon stock from some poor man. Bought it when it was a joke and ended up with like $600 after the state released his “unclaimed property” Discipline isn’t everything This isn’t advice. My investment strategy for years has been to speculate on toys and sell them off later. I’m very dumb
The problem with my anecdote is the man was literally a poorish business owner and the stock was his expected retirement He believed in Amazon because they were kicking his ass as a retailer North really an investment story but a kind of state legal forfeiture one. Ignore me. I was bored in the hospital waiting
Investing on a percent change is an economical school based on the assumption that ALL the information is already in the market. And you might never find that information elsewhere. Let's take the senator who sold $1,6 millions worth of stock based on his covid knowledge: That info was privy to him. The fact that he sold airline's stocks is probably available in the %age change of the day. Probably airlines under performed the S&P that day. So without knowing what's up, only by noting the discrepancy in market movement, you might deduce it's time to sell. So investing only according to how the market move, is economically sound in my book. But.. I was short in the middle the 1st fall in the end of February. Then lost money when the market rushed back up. And according to the "Information is in the market' theory, I closed my short, and when leveraged long ... and lost my 50% gain from 2019 in one week of march. So that 'market contain all the information' might not work so wellPercentage changes are not reason to invest. They might be reason to take a bet, but to invest, you are considering what is causing those changes. You might be wrong, but you are at least considering some sort of evolutionary process.
I sold on the first bounce after the 5% crash, because it was clear that the market finally started to take virus into account and it was gonna blow out. Unfortunately missed the bailout bounce, I don’t really have the risk appetite for it since I expect it to be a short pop and then continued unwind.
There may be additional inflation pressures on the dollar that were balancing against but that’s gonna be a hard thing to guess. The true inflation numbers haven’t been reported since the mid 90s. Maybe I’ll just use the pickup truck index as a proxy 1.4 factor from 2008 puts us at 12000 on the Dow , I think that’s a pretty fair guess https://wolfstreet.com/2019/12/15/my-pickup-truck-price-index-crushes-cpi-for-new-vehicles/