The most popular post on the CNBC website is about a guy who took his entire life savings, plus borrowed money, and put it into that most blue chip of conservative investments, Dogecoin. After putting $180,000 into it (which, again, was more than his entire net worth) he saw it explode higher, getting up to $1.7 million. Here he is (and just glancing at him, it’s hard not to think the words “cutting-edge financial genius“):
Evidently his rationale was there was a cute dog on it……..
…….and that Elon tweeted about it. And, since Elon is a genius, anything he tweets must be a sure thing.
I mean, who am I to begrudge a person putting a little “mad money” into something speculative. But for crying out loud………
Of course, when his investment went up ten-fold in the span of two months (which, let’s face it doesn’t happen too often in the investing world) a wise man might have run for the Exit door and thanked his lucky stars. But that isn’t our human nature works. Nope. Greed kicked in. So his “plan” was that once his holdings were at $10 million, he’d take 10% out. I suppose the rationale was that, no matter what, he could strut around knowing he was technically a millionaire (capital gains taxes notwithstanding).
I think we all know how this is going to end. He isn’t going to get his $10 million. At this point, he probably won’t even get his $1 million. Doge has already had more than half its value erased in a matter of days. What will this guy do if it keeps falling? You do realize what an emotional basket case he’s going to be with “diamond hands” standing on one of his big shoulders and “you idiot, you should have sold” on the other?
The Fed has singlehandedly manage to craft an entire generation of gamblers who think they are investors.