‘Young and dumb’ traders have created a ‘total nightmare’ in the stock market, fund manager warns

https://www.marketwatch.com ^ | Oct. 15, 2020 | By Shawn Langlois

[montag813]

Ironically, it was the stimulus, and $600/wk unemployment payments that put a ton of easy $$$ into Milennial pockets, which they then stuck in Robinhood and started trading every day.

The stocks kept going up as a result, and so they said "this is so easy!" This mentality is fed by guys like Dave Portnoy, who egg them on, even though he has tens of millions in cash to burn and won't get hurt when it all collapes.

[Justa]

Wow! I don’t have the stomach for trading. I invest but only in index funds and flash-crashed stocks with good fundamentals -IOW the millennials panic selling. But with all the money printing you have to be in stocks, gold, etc. to protect against inflation. Savings accounts and bonds are getting killed.

[JayGalt]

Smead Returns are abyssmal. Why would anyone take their advice. They are still running load funds.

https://smeadcap.com/smead-value-fund/

Smead Value Fund

The Smead Value Fund, the “Fund,” is a mutual fund that invests in large capitalization stocks with a value-oriented investment style. The Fund currently offers an Investor Share Class (SMVLX), A Share Class (SVFAX), I1 Share Class (SVFFX), R1 Share Class (SVFDX), R2 Share Class (SVFKX), Y Share Class (SVFYX) and C Share Class (SVFCX).

Smead Capital Management is the adviser of the Fund. The firm’s investment philosophy is:

Valuation matters dearly.
We are business owners on behalf of our clients.
We seek out high-quality businesses.
The Fund is managed by Lead Portfolio Manager Bill Smead and Co-Portfolio Managers Tony Scherrer, CFA and Cole Smead, CFA. The portfolio managers execute this philosophy through the long-term ownership of common stocks based on the firm’s eight investment criteria.

Investment Objective

Principal Investment Strategies

The Eight Criteria

Performance

Portfolio Holdings

	QTR	YTD	One Year	Three Year	Five Year	Ten Year	Since Inception 01/02/08
Smead Value Fund Investor Class	9.15%	-9.58%	-2.36%	5.50%	8.05%	12.66%	7.58%
Smead Value Fund A Share w/ Load	2.89%	-14.77%	-7.96%	3.47%	6.81%	11.91%	6.96%
Smead Value Fund A Share w/o Load	9.17%	-9.57%	-2.34%	5.54%	8.08%	12.57%	7.46%
Smead Value Fund Class C	8.99%	-9.48%	-2.25%	5.54%	8.07%	12.67%	7.59%
Smead Value Fund* I1 Share Class	9.24%	-9.41%	-2.09%	5.79%	8.34%	12.95%	7.81%
Smead Value Fund R1 Share Class	9.06%	-9.81%	-2.68%	5.20%	7.74%	12.37%	7.31%
Smead Value Fund R2 Share Class	9.10%	-9.72%	-2.56%	6.40%	8.52%	12.79%	7.62%
Smead Value Fund Y Share Class	9.27%	-9.30%	-1.96%	5.95%	8.50%	12.95%	7.80%
Russell 1000 Value Index	5.59%	-11.58%	-5.03%	2.63%	7.66%	9.95%	5.75%
S&P 500®	8.93%	5.57%	15.15%	12.28%	14.15%	13.74%	9.00%

 

[HangnJudge]

This market is like a reverse one armed bandit, instead of lose little most of time/ win more occasionally, it is win a little frequently then lose a lot. In either case, the brokers win.

[languishi]

Gambling addiction is a real thing.

[JayGalt]

I found a great HTML table generator, now bookmarked
https://divtable.com/converter/

[dfwgator]

We will take our client’s money and invest it. Part of the profit we will keep for ourselves; the rest we will give to the client.

[ SUPER: “A Tradition of Security” ]

We will make a list of our clients, and how much money each of them has given us to invest. We will keep this list in a safe place. If we have time, we will make a copy of the list, in case something happens to the first list.

[ SUPER: “A Tradition of Listening” ]

Listen to your client. It’s the only way to know what he’s saying.

[ SUPER: “A Tradition of Trust” ]

If a client is talking, and you’re not listening, and he notices, and he accuses you of not listening, just say, “Sure, I’ve been listening, I’ve heard every word you’ve said.” If he then says, “Alright, tell me what I’ve been talking about.” Just say, “You’ve been talking about your investments. Which stocks to buy and so on.” That way the client will think you’ve been listening, even though you haven’t.

[ SUPER: “A Tradition of Integrity” ]

We will invest only in white-owned businesses.

Narrator: Not all of Arthur Grayson’s principles are followed today, but at Grayson Moorhead we still believe in the basics.

Arthur Grayson: Don’t leave the client’s money lying around. Keep it in a safe place. For example: where we keep the list.

[proxy_user]

This cannot possibly be the case. The small accounts of young individual investors are dwarfed by the giant pools of capital controlled by hedge funds and institutional investors.

It does make nice click-bait.

[Secret Agent Man]

yikes

[glorgau]

If they’re so dumb, then why aren’t the seasoned and intelligent professionals using them up and taking their money? Shouldn’t be so hard if they really know what they are doing.

[Secret Agent Man]

:) some snl was good, a long time ago

phil hartman did a great clinton

i still love the skit where he jogs into a mcdonalds and while schmoozing people and explaining the somalia warlord situation, eats food from everyone

and then the hillary kicker at the end

[Vigilanteman]

Sorry for your nephew. But what backs crypto currency except other investors? This is pure speculation.

Picking on Microsoft or Apple because of 40 EPS ratios as overpriced is stupid (actually they are more like 38 and 37) because both or established companies with a proven earnings stream.

Twitter, with a -29 EPS, on the other hand . . .

[willyd]

Millenials will have to figure out that they aren’t special...just like we all did.

[willyd]

I sold my bitcoin to buy wood for a deck... so I like to say I have $250,000 deck in the back yard!

[TheDandyMan]

It used to be “Damn millennials, they don’t invest...”

Now it’s “Damn millennials, they’re investing differently and creating different dynamics than the conventional wisdom is used to”...?

[PMAS]

*

[dfwgator]

Secret Service Agent: Fine. But please don’t tell Mrs. Clinton.

Bill Clinton: Jim, let me tell you something - there’s gonna be a lot of things we don’t tell Mrs. Clinton about. Fast food is the least of our worries.

[rightwingcrazy]

If your trading even allows just a 0.1% chance of losing everything, eventually you will lose everything.

[languishi]

hartman death really killed snl

[qam1]

He thought he could get to 40 million on the leveraged trade but it was the wrong call.

He didn't lose it all on Frozen Concentrated Orange Juice did he?

For Xmas I would give him a Trading Places DVD