Bad influence: Why you should be wary of the finfluencer
real estate companies to stratospheric levels. Well, people had to find reasons to drive up stock prices! Animal spirits were at their peak in this period. From 2020, it was all about the goldilocks economy, where everything was expected to be perfect post the pandemic.
People would want bigger houses, better holidays, the best durables, premium services and so on and so forth. Club this with a massive dose of cheap money, and a stock market rally triggered. But this time around, the flag bearer had no face per se.
On the contrary, it was a whole community of people who took to social media to “show" people how to make money. Yes, it was here that the finfluencer was born. What’s also important to note, and you know this already, is that personalities and ideas as originally conceived in each of these bull markets were ultimately proven to be largely hollow.
A great example here is the TMT bust. Almost all the so called darlings of the market got decimated, never to recover. Very few actually went on to generate serious money for investors.
Amazon was one of them. But then for every Amazon, there were probably 1,000 companies that disappointed. Each time this played out, millions lost part/most of their savings.
Sad. Yet, there’s something about personalities and the “new" ideas they float that gets the masses every time. Even though they may have suffered losses before.
If we can pick this out, perhaps, the next bust can be avoided. India is once again gripped by endless wealth generating possibilities of its stock market. This time around, there’s a lot more than hope.
Read more on livemint.com
