I turned 65 this spring and for some strange reason, now find myself prone to pontificating. That includes pouring my hard-earned wisdom onto young business partners and unsuspecting nephews.
It’s hard to resist because today’s youth are taking an unprecedented interest in investing. It’s been a unique aspect of the COVID-19 cycle. Discount trading platforms are seeing a surge in account openings while trading in low-priced stocks has exploded.
Last week, I overheard a young guy tell his friend that he was spending a lot of time on investing. “I’ve focused in on the Nasdaq,” he said. My nephew, who’s never been particularly interested in investing, asked me whether it was time to buy Air Canada.
This is exciting for me because I’ve preached for years (even before reaching the appropriate age) that young investors should be bouncing off the ceiling when stocks are down. Bear markets are a gift for those who are accumulating assets and have a long runway ahead.
I wrote a column last summer on how to get started, although it seems mundane in the context of today’s high velocity market. Indeed, it’s inspired me to write chapter two — some tips for new investors who are now up and running.
In the short term, it’s a casino
Don’t read too much into day-to-day price changes. The market is a complex organism that’s influenced by a variety of factors and interconnections. Short-term moves are more often random than linked to specific announcements or news items.