When A Goofy TikTok Couple Offers Stock Trading Advice, Is It A Sign Of A Stock Market Top?

Joe Kennedy, the father of President John F. Kennedy, went from being a wealthy bootlegger during Prohibition in the 1920s to a big-time, even richer, stock trader. Although, it’s said that a lot of the money came from insider trading and other questionable activities. But whatever, he got his kid to become President, even though it didn’t end too well.

The senior Kennedy famously told the tale of when he knew it was time to get out of the stock market. The moment came when a young shoeshine boy (yeah, that was a thing back in the day) offered the old guy some stock tips. Kennedy figured, if the shoeshine kid had tips, the stock market is way too popular and there is nowhere for it to go except downward.

Famous investor Bernard Baruch said before the stock market crash that began the Great Depression, “Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day’s financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929.”

We may be heading in the same direction today. The stock market has been hitting consecutive new highs. This is happening while millions of Americans are out of work, worried about holding onto their jobs and concerned over possibly getting evicted, as they don’t possess sufficient emergency monies to tide them through the tough times.

There has been a wave of young Robinhood day traders, Redditors giving investment advice and TikTokers bragging how much money they’re making buying and selling stocks.

This could be due to the low bank rates, along with being stuck at home with nothing much else to do after we’ve binged all of the good shows on Netflix.

The beginning of the end of this bull run in the stock market may be marked by two TikTok investment geniuses. With full confidence and bravado, the couple brag about how easy it is for them to make lots of money. It’s a very complicated strategy. The dude, without any hint of irony, says their secret is to buy stocks that are going up. Yup, buy as it’s going up and then jumping off and buying another stock that’s going up. What could possibly go wrong? Should we be the ones to tell them that stocks don’t always go up. In the short term, sometimes they do. In the long term, nothing goes up forever and, the bigger the financial bubble, the bigger the burst will be.