One of the rather surprising trends since the COVID-19 lockdown has been the new wave of first-time share market investors. Many have enjoyed huge gains since the March market rout – often by speculating on highly risky businesses. But the ensuing dislocation between share prices and economic reality tells me that some could get their fingers badly burnt.
The combination of lockdowns, government handouts and a lack of sporting events has resulted in the emergence of a wave of debutante stock market speculators. And for many, if not all, it is highly likely they have never invested or traded through a recession.
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