I think you’d have to have a relatively weak market in the first place to make a lot of money. In order to get into an uptrend you have to be in a market where traders go to find value rather than just being there to make a lot of money. That’s not the case everywhere around the country because we have a lot of really competitive markets.
I look at the market as the ultimate “greed is good” market! You’ll want to always see the same kinds of stocks. You want to always see the same kinds of trading volumes on the same types of firms. As long as all of the different firms have an opportunity to compete, and the market is not stagnant, people will be willing to come to the market and invest. That’s where the great opportunities are.
In the past, the stock market has always been influenced by supply and demand. Demand is always going to be higher, which means more trading volume as new buyers come in, and it’s going to have to be spread evenly over a wide range of companies so everyone has a lot out there. Supply is very important, but so is the amount of capital available on the market. We don’t have a lot of money here. But for the most part, we’re very active. So as long as people feel that the markets are not stagnant, then they’ll stay invested at least for the next couple of years.
What if some of that money isn’t actually going into the stock market? What would that do?
I think most people would put their money into something in the Internet space, but it’s a big market. We’re seeing a lot of people who are sitting still, who won’t invest at any market price. Because they think that they’ll get better returns at the margin when they sell their stocks after a long time. But there are huge opportunity costs just sitting around waiting for people to put their money to work.
What have been some of the worst cases of this type of behavior?
I think things happen to people all the time, and we try to help people realize when it’s time to sell. It’s not always an easy time, but it can be very stressful if someone doesn’t get that opportunity, or doesn’t have the confidence to sell.
You’ll hear a lot of these guys who get into this sort of thing as an investment, so they’re going to invest it whether it’s an ETF or a mutual fund. The biggest thing I
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