The Market Went Down on Monday – the Feds Must be Asleep at the Wheel

Douglas Cote

Douglas Coté, CFA

Senior Portfolio Manager, Head of Global Perspectives

It happened again, just like it did in 1999. A friend told me that he was a genius for buying Tesla and wished he had bought more, so he could be hailed as one of the “Tesla-Millionaires.” Oh well, but wait, he had a new, even better idea — Bitcoin! Who would have “thunk it”? I wouldn’t be so jaded if I hadn’t managed money through these manias before. In fact, the last time my friend was so euphoric about his stock picking ability was in 1999 and the next 20 years have been one loss after another to the point where he gave up on picking stocks “forever,” that is, until now. Hey, I make no bones about it, 2020 was a fantastic, magical, lovely year for stock pickers; it’s just not so lovely when it ends. Back to the market on Monday: it actually went down one day in a row — what is up with that? We need more stimulus from the government and the Federal Reserve so that doesn’t happen again.

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