There’s suddenly a lot of dismay from the new “guru” class of stock pickers and the trading platforms that provide their services. None is more prominent than, Dave Portnoy aka “Mr. Stocks only go up!” and the once hero of “the little guy” now turned villain, Vlad Tenev CEO of the trading platform Robinhood™.
Here’s the thing about both that I want to point out, which I’ve been pounding my keyboard and screaming at my microphone over the past couple of years…
First: “Everyone’s a ‘genius’ as long as the narrative and momentum doesn’t falter.”
Nothing too complicated about that statement and is pretty much been a known known on Wall Street forever.
However, it’s the second part that I’ve added which affects the prior to reverse exponentially and rapidly that “genius” moniker that’s the real issue, and it is this…
“What are you going to do when the markets turn against you in ways you can not close or alter your position? Who you gonna call, Ghost-busters? You might as well try, because you’ll have an easier time getting a hold of Mr. Aykroyd and crew than you’ll get someone on a discount brokers trade desk. That is – if there’s anyone there to begin with.”
The idea that stocks can only go up, along with you can get expert, timely trading help from an app on your cellphone that allows you to trade for free is not only an absurd notion – but it’s down right childish, and shows just how low the bar has fallen to anyone displaying competency in risk analysis.
Now the flying, fickle, fingers of blame are being thrown back and forth as if either has a point. They don’t. Both are finding out just what happens when “the sh#t gets real.”
Hint: Welcome to Real-ville. And everyone should probably get ready to buckle up and have their “big boy pants” at the ready. Because it’s quite possible…
It’s about to get a whole lot realer. And soon.
As always, we shall see.
© 2012 Mark St.Cyr