Fear and Greed
By PDS Wealth Management on June 22, 2022
Your neighbors are fearful. It may be time to get greedy.
Six months ago, Barron’s prominently published an article advocating the purchase of Amazon shares at $3,250[1]. Last week they traded at the equivalent of $2,040 (adjusted for recent stock split.) Neither I nor my family have curtailed our daily Amazon purchases.
If anything, perhaps more of us who must drive to a mall to compete with Mr. Bezos by burning newly doubled gasoline have decided to click rather than to drive. In the meantime, Mr. Bezos took a few pals to space and entertained us.
Hordes rush to the popular.
The internet-empowered, who recently became a force in modern investing, have pretty much played their hands and folded. Dave Portnoy no longer derides Warren Buffett as “washed up.” Consider “FANG”:
Facebook has changed its name and its share price. No longer a whole chicken, it is now a thigh.
Amazon is mentioned above.
Netflix, a year ago at $500, closed yesterday at $170. I still stream movies.
Google, the best of the lot, is only down 30 per cent.
Have you stopped using any of these?
Our nation is experiencing political upheaval and will continue to do so. We will soon dismiss our current politicians, who have used hysteria to distract us. (They always have.)
America will overcome controversy, as it has done so many times. We will again drill for carbon. We will also lead the world in developing its replacement.
Be of good cheer. Ten years ago, financial pundits everywhere advocated your “diversification” into “non-US” investments. Every dollar you moved offshore then is worth 44 cents today.
Don’t follow your neighbors. We will help you find the high road. It’s rarely crowded.
Tom Parker, CFP®
Managing Director
[1] https://www.barrons.com/articles/amazon-stock-buy-for-2022-51640900207