Like a desperate, testosterone-amped teen chasing a prom date, some speculators are chasing stocks, regardless of the price paid. Greed hasn’t fully set in like we witnessed in the late period of the 1990s tech boom, but nevertheless, some of the previous overly cautious “sideliners” feel compelled to now get into the stock game (see Get Out of Stocks!*) or increase their equity allocation. Missing a +23% annual return for five years, while getting stuck with a paltry 0.25% return in a savings account or 3-4% annual return achieved in bonds, can harm the psyche and make savers bitter. Now, the regret of owning stocks has shifted to remorse for not owning stocks. Back in 2009, many investors regretted owning stocks and as a result locked in losses by selling at depressed prices. Now, as the relentless bull market has continued to set new all-time record highs, the negative sentiment cycle has slowly shifted in the other direction.
This strategy felt OK until the massive 5-year bull market went on a persistent, upward tear beginning in 2009. Rather than embracing the losses as a new opportunity, many wallowed in cash, CDs, bonds, and/or gold. Whether it’s a desirable job, car, romantic partner, or even an investment, people bask in the pursuit.įor many investment daters and trading speculators, 2008-2009 was a period of massive rejection. When it comes to other aspirational categories, humans also want what they cannot have because they revel in a challenge. But the quest for the inaccessible is not solely limited to dating. Chasing the seemingly unattainable event aligns with man’s innate competitive nature. Men (and arguably women to a lesser extent) enjoy the process of hunting for a mate.
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