What if I told you that future market returns could approach zero? This seems hard to believe, considering young investors piling back into the markets since the beginning of the year. As I discussed previously, this behavior follows the clubbing many received in 2022.
A recent Wall Street Journal article discussed how retail traders that made millions during the pandemic trading the market are now mostly wiped out.
A quick search of headlines from the end of 2022 confirms that much of the retail spirit was broken:
• “Retail Traders Throw in the Towel,” September 2022
• “The Era of the Meme Trade Is Over,” October 2022
• “Are Retail Investors Done? Biggest Liquidation Since 2020 as Retail Is Now ‘Selling the Rally,’” October 2022
• “Retail Traders Lose $350 Billion in Brutal Year, December 2022…