Here’s a headline from CNBC on May 12, 2020: Young investors pile into stocks, seeing ‘generational-buying moment’ instead of risk
The headline’s message corresponds to many investors’ belief that the stock market is at the start of a bull run, not at the end.
Yes, financial history reveals that the same psychology was on view before, such as when “The New Economy” was heralded in 2000, just when stocks were peaking.
And, if you want to go back any further, the declaration of “A New Era” in 1929.
Newcomers now take pride in their lack of knowledge
The “Rise of the Know-Nothings” is depicted in this map from The Wall Street Journal. It’s focused on GameStop fans’ postings on WallStreetBets’ Reddit forum.
Following GameStop’s high on January 28, the number of people claiming stock market ignorance increased to about 3% of those who posted on WallStreetBets.
The know-nothings were characterized by words like “stupid,” “idiot,” and “no idea what I’m doing.”
On March 14, the number of know-nothing references hit an all-time high of nearly 11%.