The Stocks-Only-Go-Up Strategy Falls Into a $2 Trillion Ditch
- Companies that led the retail rally since March get crushed
- After the selloff, the market is still nothing like a bargain
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Recent converts to a one-way trading blueprint popularized on Twitter and in chat rooms have learned it is not quite the bullet-proof strategy it had recently seemed.
“Stocks only go up” was the philosophy, and however tongue-in-cheek the intent, it got a jarring refutation Thursday as the S&P 500 plunged 6% and almost $2 trillion was erased from equities. Selling was worst in areas of the market embraced by armies of retail investors that have swarmed to equities in the last month, including airlines, energy producers and banks.