As retail investors capitulate after eight years of avoiding equities, insiders cheer as they now have useful idiots to dump their shares on

Posted by Kenneth Schortgen

Fool me once, shame on you. Fool me twice, shame on me. This of course is a famous axiom that has acted as a reminder to people to always be aware when someone seeks to get you to perform an action that deep inside you know isn’t good for you.

And for eight years following the stock market crash of 2008-09, this has worked well for the retail investor who was fooled the first time in 2000 when the Dot Com bubble burst, and then a second time when they let down their guard to be a part of a stock market that grew from the artificially spun housing bubble.

But alas unlike the German people who still today remember and take cautions 80 years after the hyperinflation they experienced during the Weimar Republic, the American investor has a much shorter attention span. And with the false exuberance of the Trump election that is being coupled with stocks hitting unprecedented all-time highs, the combination of fear and greed has finally overwhelmed the retail investor and they are suddenly jumping back into stocks at a time when fundamentals are at their worst.