Peter Lynch described the five stages of the market by relating it to a cocktail party at different times during a market cycle.
In the first stage (bottom of bear market), people ask what Lynch does. He tells them that he is a mutual fund manager and they quickly move on to talk to someone else.
In the last stage (top of bull market), when he tells people he is a mutual fund manager. Everyone starts giving Lynch suggestions of what to buy. These folks are like the shoe shine boy who doesn't know anything about the details of the equity markets, but offers prodigious amounts of investment advice.
Today on the business news, they were talking about tweets that are being made by Tom Brady and Congressmen, and how those tweets moved the market. Now, I like Brady as a football player and Congressmen are probably good lawyers. But are they my "go to guy" for investment ideas and advice? Oh hell no!!
Shoe shine boy (underdog) is here, although he might have some difficulty finding a telephone booth to change in!
I’m sure that Tennessee Tuxedo is not far behind and is giving advice too. “I will not fail…”
Be smart, be well-read, be aware and be successful.
