If Millennials have been beaten up a lot, Zero Hedge is warning the generation to prepare for another round of trouble as many are moving into a dangerously unstable stock market trying to make investments.
TD Ameritrade added 608,000 accounts in the first quarter, Charles Schwab Corp. added 609,000 accounts, and E*Trade saw a gain of about 363,000.
Steve Quirk, executive vice president of trading and education at TD Ameritrade, said the number of new clients has increased since zero commission trades started late last year. He noted recent account increases had been seen mainly with “millennials and Generation X.”
In past selloffs, brokerages have noted that accounts and volumes of trades tend to tick higher as retail clients look for opportunities.
“People are absolutely more engaged here because you’ve removed the cost to trade,” said Devin Ryan, an analyst at JMP Securities.
We noted in one study that at least 97% of Brazilian day traders lost money. Other studies have shown that swing trading usually end in sad stories among pajama traders. (source)
Right now, to paraphrase the words of the comedian Jeff Foxworthy, it would probably be a more coherent investment strategy to go to the dog track and place one’s bet on the dog that relieves himself on a nearby fire hydrant closest to the race starting time.
Stocks have always been a semi-rigged casino to gamble in. Of all times, now is NOT the time to invest in the stock market.
Remember what happened a few weeks ago with the COVID-19 bailouts- the government has veritably taken control over the markets by way of exchanging bailout money for government control over companies. Basically, any company who got bailed out is now partially owned by the Federal Reserve Bank.
This is the merger of state and corporate power, or fascism. Shoebat.com and many others covered this. Yet a few weeks after this has happened, who remembers it? Nobody cares about it, and many seem to think that they can “win” at a rigged game.
When one goes to a casino, one knows there are certain games that while are difficult to win at, one can reasonably predict the outcomes of based on patterns observed. Poker and Blackjack are two of these games. Others, such as slot machines, can be pre-programmed to favor a person losing.
Which is the better game to play? The one where one can lose but mathematically gauge chances, or the one where failure can be built in? Clearly the answer must be the former. Yet this is what has happened to the markets, as they have become the latter, and are programmed to fail by the government as they please.
Stocks right now may go up, but now is not the time to invest. If anything, it is to watch them and once they are made to rise, to pull from them and take what losses one must take.
Any Millennials who invest in the market right now are likely not going to make any money. It would be far wiser, since the value of the currency is in decline, to focus on investment into hard assets, such as metals, land, or other forms that can transmit and store value as opposed to decline in it.
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