There are more exciting things happening in the market than Nvidia stock (NVDA) rising almost every day.
Peter Tuchman, veteran New York Stock Exchange (NYSE) floor trader and co-founder of the Wall Street Global Trading Academy, Peter Tuchman, called the bull market in equities, which has brought 40 million new retail investors to the market in recent years, very ‘exciting’.
As a result of this influx, household net worth continues to rise.
According to the latest data from the Federal Reserve, US household wealth rose to a record of more than $160 trillion in the first quarter. During that time, household wealth rose 3.2%, or $5.1 trillion, with stock price gains accounting for $3.8 trillion of gains.
“We are at a crossroads,” Tuchman said on Yahoo Finance’s Opening Bid podcast (see video above or listen here). “We are in an extraordinary time and history.”
These new retail investors have expanded their exposure beyond popular meme names like GameStop (GME) and AMC (AMC), which have dominated Robinhood’s (HOOD) trading accounts in 2021.
The latest Robinhood Investor Index, which tracks the performance of the trading platform’s top 100 most managed investments, shows that retail investors have invested in companies they understand and that have an impact on their daily lives, like Apple (AAPL) and Microsoft (MSFT). .
And yes, Nvidia.
It is good to see that investing is becoming accessible to more people, says Tuchman.
“All those barriers to entry that were really important and kept this a very exclusive place, those days are gone,” he said. “I think that’s really a great thing. Suddenly everyone is invited to this party.”
Tuchman has traded through many market parties over the decades. He’s known for iconic photos taken of him on the NYSE trading floor, and his wild hairstyles and smart manners earned him the nickname “Einstein of Wall Street” for valid reasons.
His resume includes guarding the velvet ropes and being Mr. “No” outside of Studio 54, owning a jazz record store and working in a jazz club.
“My approach to the market was different from that of a normal person analyzing the market,” he said.
In the mid-1980s he took a summer job as a teletypist on the stock exchange floor and eventually worked his way up to become a real estate agent.
“The energy, the adrenaline, for me, from the moment I walked onto the floor, I knew this was for me,” he reflected.
Tuchman’s career overlaps with many major market downturns, including Black Monday, September 11, and the Great Recession. “You saw people losing their future,” he said. “But I also saw the capacity and resilience of people on the work floor.”
There was a lot of resilience, energy and adrenaline on display this past week as markets reached new highs.
Investors saw Nvidia soar to a market cap of $3.34 trillion, briefly making it the most valuable company in the world. Apple beat it by $3.29 trillion and Microsoft by $3.32 trillion before the stock lost ground.
This enthusiasm for Nvidia points to its healthy position in artificial intelligence going forward – something 40 million new investors should keep in mind.
Even though the market is popular, it’s still important to do your homework and look for value. Well-known value investor Jonathan Boyar of Boyar Research shares his approach in an episode of Opening Bid. Listen below:
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