In 1929, Joseph Kennedy decided to sell all of his stocks and get out of the market after a shoe shine boy gave him advice on what stocks to buy.
Kennedy concluded that if his shoe shine boy was giving him tips then the market was at the top.
He was right.
He then sold most of his stocks before the fatal crash in October 1929 and used that money to further enhance legacy fortune during prohibition by illegally bootlegging liquor.
Way to go, Joe.
Roll the clock forward to October 2020 and – over the weekend – we found the following headline: Sign Of The Top? Porn Star Pitches ‘Trading Seminar’ – “It’s The Right Time To Get Into Stocks”
You cannot make this stuff up.
Seriously, since the market meltdown in March, millions of first-time traders have downloaded Robinhood where they’re convinced that stocks only go up and every dip is merely an opportunity to buy more.
It seems like every week some new celebrity is trying to cash in on the day-trading craze that’s recruited millions of retail traders into the market…and made the trading platform, Robinhood, a huge success.
What these new trading geniuses don’t realize is they can (and will) be blindsided by last-minute calls to up their margin requirements or risk liquidation.
In the meantime, these new market mavens are being titillated with a series of trading classes from a p**n star – excuse me…Ex-Porn star whose initials are LR– posting on her Instagram account @Truetradinggroup.
As if 2020, The Year of Chaos wasn’t bizarre enough, you now have to wonder if this isn’t today’s version of Joe Kennedy’s shoe shine boy giving investment advice.
As we’ve said many times in the past, “You can’t buy when the market dips if you don’t have any cash on hand.”
Translation: Be sure to have some dry powder (cash) on hand…especially going into the election.
Between now and January you should expect things to get really crazy…Maybe even to the point where we’ll see the 21st version of Prohibition enacted.
Be sure to read The Fall of the Cabal in our October issue of “…In Plain English” to prepare yourself for what’s coming.
It’s Not Just About Finance.