A Sign Of The Apocalypse?

By Joseph Calhoun

From Reuters via CNBC:

As any exasperated parent will tell you, most teenagers are obsessed with highly superficial fare: TV, clothing, trips to the mall or the latest smartphone app.

Rachel Fox isn't most teenagers.

The 17-year-old actress made 338 stock trades last year, earning 30.4 percent gains and clobbering the S&P 500. She peppers her conversation with phrases like "covered calls," "shorts" and "double tops."

What really gets her blood running is technical analysis. "When all the indicators line up, it's the best feeling," said Fox, who has starred in TV's "Desperate Housewives" and "Melissa & Joey."

Well, I guess it is better than reading about how her Mom & Dad blew her acting earnings, but Rachel Fox outperforming the S&P 500 by doing 338 trades in the last year is not good news. This isn't investing; it's gambling. I'm all for teaching youngsters to invest but that means learning about balance sheets and income statements and asset allocation, not double tops and inverted head and shoulders patterns. 

Is this a sign of a top? Well, if it has gotten so easy and fun that teenagers are doing it, I'd say we must be getting close.  

 

Joseph Calhoun is CEO of Alhambra Investment Partners in Miami, Florida. He can be reached at jyc3@alhambrapartners.com

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