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Army of millennial passive investors


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#1 NAV

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Posted 09 February 2018 - 01:04 AM

That's the biggest wild card here. It's been an easy ride from 2009 for these folks. Everything they touched has been gold - passive stock investing, startups, bitcoin, ICOs, Robo trading. They have been rockstars at a young age, in a no-volatile world ! They got their first taste of mean reversion and what volatility means in the Bitcoin world. Now it's the stock market's turn to test these rockstars.

 

How many trillions in passive invested funds again ? Let's see how orderly that unwind goes.


Edited by NAV, 09 February 2018 - 01:06 AM.

"It's not the knowing that is difficult, but the doing"

 

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#2 dougie

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Posted 09 February 2018 - 02:05 AM

Can you elaborate on this please

#3 trioderob

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Posted 09 February 2018 - 04:59 AM

all they know is winning  - how will they react to losing money ?



#4 edamat

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Posted 09 February 2018 - 06:23 AM

do you mean to say that the bear market has just begun, NAV?



#5 NAV

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Posted 09 February 2018 - 06:43 AM

do you mean to say that the bear market has just begun, NAV?

 

NO.

 

None of my indicators suggest anything more than a medium term correction at this point. My approach is in baby steps - Short term to Medium term to Long term. Currently my signal has progressed from ST to MT sell. LT is still on a buy.

 

To clarify my above post, the depth of this medium term correction will depend on how the millennial passive investors react. If they don't panic, i expect the market to bottom somewhere around the 200 MA.


"It's not the knowing that is difficult, but the doing"

 

https://twitter.com/Trader_NAV

 

 


#6 tommyt

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Posted 09 February 2018 - 10:32 AM

"Everything they touched has been gold - passive stock investing"

 

Its been an easy buy & hold world for years = passive investment strategy. Now its a nonpassive investment setup, you gotta work for your money going forward. Most millennials and younger money managers are in for a surprise.