As people sat home during the pandemic, trading stocks became extremely popular and TSLA was one stock on everybody’s watchlist.
In March of 2020, parts of the market had seen a 30% drop, but since then, TSLA stock has increased nearly 700%.
Here's a chart showing you how Tesla and Zoom compared in 2020 to the S&P and the Nasdaq.
In 2018, Warren Buffet was asked if he was worried that about another financial crisis.
“Well, there will be one sometime. People start being interested in something because it's going up, not because they understand it or anything else.”
“But the guy next door, who they know is dumber than they are, is getting rich and they aren't," he said.
This is FOMO investing.
Picking stocks has become so popular in part because of the technology, but the rise of social media and the ability for first time investors to google “best growth stocks” has also driven the FOMO.
Who can’t help be jealous when you read about people retiring in their 30’s because they bought shares of Tesla? If you see your neighbor who thinks the U.S. dollar will collapse in 2021 turn a $500 Bitcoin investment into $20,000, it can be hard to resist the urge to pile part of your own savings into the speculative fervor.
Every day people predict what direction the market will go in 2021, but the truth, is nobody knows what will happen tomorrow. We could discover a deadly new strain of virus, or a develop vaccines that are highly effective faster than we could ever predict.
It is impossible to predict what direction the market will go tomorrow, let alone an individual stock like Tesla. One thing is certain though, past performance does not guarantee future result, on both the upside AND downside.
Sources
https://awealthofcommonsense.com/2021/01/so-you-turned-300k-into-3-million-now-what/