Stock Markets are just like Social Media

Stock markets and social media have their share of similarities.

A short story to drive the point.

A year ago, long before the pandemic hit us, Yes Bank was dealing with a crisis of its own.

Yes Bank’s stock had hit a new bottom. Lacs of investors (including me) bought the stock, thinking it will rise again like a phoenix.

Well, it did not. It kept on sinking.

All hell broke loose. I exited the stock.

And then it hit new lows every day. Thousands of crores of investor wealth was destroyed.

During that time 20-30% of investors in India had Yes Bank in their accounts.

I later learned that even after my exit, my dad and brother had their positions in Yes Bank.

Yes Bank was a falling knife everyone wanted to catch.

To cut the long story short, stock markets and social media work on trends.

These trends are built overnight, thanks to the internet.

You better be quick to invest in these trends.

Or by the time you invest your efforts and money into these trends, the world would have already become a different place

The information these days travels at the speed of light

It is like watching bright star millions of light-years away

Who knows whether the star still exists or has already collapsed to form a black hole

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