Do you think that investing change in stocks is a good idea? Optimism has reached historical proportions and is reflected in numerous actions and events (massive buildings, movies, music and so on).History shows us, when everyone is involved in stocks, little upside potential remains. Another peak of optimism is reflected in a new app. “Acorn” is an app that invests your leftover change in the stock market. For example, you pay with your credit card for a hamburger, which costs 1 dollar and 50 cents, then the app rounds it to the nearest dollar (2 dollars) and invests your change of 50 cents in the market. The amount of money in retail money-market funds as a percentage of total U.S. stock market capitalization fell to record low. Now US citizens are more dedicated to the financial markets than ever. Is this a fast way to lose your change? Do you think that investing change in stocks is a good idea? You decide.
This peak of optimism lines up with our long-term analysis and indicates a future slumb in stock. If everyone is “all in”, then the uptrend has come to an end. Now is the time to consider the future of your funds.
