Ben says yes, investors are getting smarter. His evidence is the fact that a market sell-off of 35% brought in millions of new investors, arriving as they did, all at once, as though prompted by a divine thunderclap from the skies. It’s really quite remarkable that the reaction to a bear market was a speculative mania and a new generation of investors getting into the game all at once. The 2008 crash produced the opposite response – millions of people vowed they’d never trust or rely on the stock market ever again. So Ben says clearly something has changed.
An alternative argument, made by Michael, is that, no way, people don’t change, and the enthusiasm for stocks can be chalked up to the fact that people had too much time on their hands, no sports to watch or bet on, and then Davey Daytrader took the interest in trading into the stratosphere.
Let’s say they’re both a little bit right. What do you think? Text me! +1 (917) 540-6095 – who do you agree with, Ben or Michael? I’ll post the best responses here in a new post later.