Remember Rachel Fox? For those who do not, here is a reminder courtesy of this blast from the February 2013 past interview of the then-16 year old Desperate Housewives “TV star” who became a “star trader” using her acting money, and after returning 30% in 2012 and outperforming 99% of hedge funds, was promptly interviewed by CNBC, unleashing the whole “17 year old hedge fund manager” meme:
Forget Ackman, Einhorn, Bass, And Hendry. There is only one name in the world of equity market performance in 2012 – Rachel Fox, of ‘Desperate Housewives’ fame.
With a 30%-plus performance, the day-trading debutante has turned from actress to activist as she day-trades her way through the day. The 16-year-old actress who made 338 trades last year, based mostly on technicals, “…fell in love with the idea and the concept of being able to just buy something, have it go up, or have it go down, depending on which way you bet it and have it make you money. I thought, oh, my, gosh, that’s amazing, and so easy, I have to do this.”
If ever there was a sign of the extreme bubble that central planning has re-created for us – it has to be this.
Her advice: “you have to really just trade on your own instincts and not just be like, oh, this person says this is great, let me just go for it.”
Our advice: next time readers are discussing stock tips with a random employee of Hustler Club, Scores or Spearmint Rhino – don’t just stare, listen! Said ‘random employee’ is almost certainly outpeforming the “smart money”, and the broader market, by a wide margin. Thank you Ben.
Three years later Rachel is back, all grown up at the ripe old age of 19, and still a star trader according to her latest interview this time not with CNBC but with ABC’s Good Morning America.
In it she “shares her financial secrets“, such as the following.
“When I was 16 I was like, I understand a lot about, you know, companies,” the “Desperate Housewives” actress told “Good Morning America” co-anchor Amy Robach. “And … how they IPO on the stock exchange. I had this understanding and know-how. I had the skill of managing money….”
Armed with this skillset she not only generated a 30% return in 2012, nearly double the return on the S&P’s paltry 16%, but put to shame virtually all hedge funds.
How did she do it?
“I have a couple different strategies,” she said. “… With other investments, I will definitely pay attention to what’s going on in pop culture a lot … you can often take that information and kind of, arbitrage it before Wall Street knows about it. So, being a young investor, actually, has huge advantages and nobody even knows about that, because pop culture and, you know, all the things that influences certain companies to do very well, is right at your fingertips.”
So for all those worried about fundamentals, technicals, and which central bank will buy junk bonds next, here is what you’ve been looking for: be young, ideally between the ages of 16 and 19; failing that, just keep an eye on the “pop culture” that fascinates young people and you are guaranteed to outperform the market.
“… If you’re curious about something, just let that drive you and just go with it,” Fox said. “Just let the enthusiasm take you ’cause that’s what I did and I was like … ‘There’s no females in this industry or this world, but I’m gonna do it anyway.'”
The last thing we would like to do is temper the young star trader’s enthusiasm, but we would like to advise young Ms. Fox that the most prominent hedge fund manager (in the U.S. and the world) just happens to be female, and her name is Janet Yellen.
Her full array of “trading secrets” are revealed in the interview below.
via Zero Hedge http://ift.tt/1V7oepe Tyler Durden