by Pam Martens and Russ Martens
Wall Street on Parade
There’s a full-blown assault occurring right now to lure young, unsophisticated investors to trade their own accounts instead of investing in low-cost passive index funds or using an investment advisor.
The enticements are the worst we have ever seen and harken back to what was occurring in the lead up to the devastating 1929 stock market crash that ushered in the Great Depression.
Consider the video advertisement shown below from stock and options trading app, Gatsby, owned by Gatsby Digital, Inc. A young black man sits unshaven in his bathrobe tapping on his mobile phone, ostensibly getting stock quotes or placing trades. A voice-over reassures him: “Of course you’re ready. You were born ready. And with Gatsby, it’s so easy. You can do it from anywhere.” Fade to the man in the bathrobe sitting on a toilet seat, ostensibly still trading his account.