Excerpt from CNBC quoting DataTrek Research:
…. “This is not 1999, at least not yet,” DataTrek Research said recently in a blog post. “Yes, there are echoes. But the Google search data shows the rush of new investors/traders is already waning. Once sports betting comes back online, we suspect it will decline even further.”
Enthusiasm over internet stocks drove almost all the retail investor misallocation of capital in the late 1990s, DataTrek added. Now, the Robinhood investors all buy into a jumble of low-quality names with nothing in common aside from a sub-$5 stock price or a one-off story.
“There are plenty of reasons to be cautious on stocks here, but retail investor enthusiasm is far down the list once you actually look at what they are buying and put their actions in historical context,” DataTrek said”….
Read the full article here on CNBC!