You’re Being Too Loud…
The stock market has been incredibly noisy of late. Between meme stocks, inflation fears, and record IPO numbers, what seems like everyone is becoming obsessed with building the perfect portfolio in order to get rich quick.
Retail investors are definitely carrying the torch on this mania, buying nearly $28 billion worth of stocks and ETFs on a net basis in June, even more than during the height of meme stock mania in January. As well as this, the number of IPOs in the first 6 months of 2021 has surged to more than 180, raising $79 billion — already more money than U.S. IPOs raised in all of last year.
There’s just a lot going on.
We are even seeing this with our customer support team, who are receiving daily messages from investors looking for the easiest and quickest way to build the ‘perfect’ portfolio. While I could wax lyrical about lessons such as how investors should wait two months before investing in IPOs to avoid volatility, or diversifying with companies you believe in; I won’t. You’ve heard it all before.
Instead, I’m going to recommend that you read this excellent article by Morgan Housel about the importance of not trying to build a perfect portfolio.
If you are to only take one lesson about investing today or even this week, then let this be it.