This morning, as I was catching up on my reading, I stumbled onto this gem from Business Insider of an interview with the founder of Robinhood, a mobile app to let individuals trade stocks with no commissions.
‘It’s [Robinhood Gold] serving a need that we saw in a part of our core user base, which includes people using Robinhood for the first time as well as those who have been with us since the beginning. A really large percentage of those users have become more mature investors. The No. 1 thing they kept asking for was the ability to use a margin feature.’
With margin debt levels at already record high levels, the demand by individuals to leverage themselves into the financial markets has always, without exception, ended extremely poorly. Since the vast majority of users of the Robinhood app have never seen a bear market, the real lessons of trading have yet to be learned.
It also brings me to today’s post.
This post was published at Zero Hedge on Aug 21, 2017.