Dear Reader,

‘Dumb investor’ is a crass term.

But unfortunately, it’s an apt one for many an investor right now, the world over.

As Charles Hugh Smith at The Daily Reckoning puts it, professional investors from Collins Street to Wall Street have:

‘…been patiently waiting for retail to go all-in so the pros can sell all the over-valued stocks to the euphoric, trusting retail traders, who will continue to buy the dip and rotate into the next hot meme-stock until their fortunes have dwindled to spare change.

‘The con requires euphoric confidence that stocks only go up forever, and every retail trader is confident in their ability to ride the wave to riches.

‘We’re finally at that summit of euphoric confidence, where faith in the Federal Reserve is literally a religious experience.’

Perhaps the most important thing you can do right now is educate yourself out of that mindset.

One way to do that is to read this.

Cheers,

James Woodburn,
Publisher, Fat Tail Investment Research