Former SEC Chairman Critical Of American Investors


Harvey Pitt, who once headed the Securities and Exchange Commission recently gave his thoughts on today’s climate in investing. Pitt, in an interview given to CNBC, expressed his conclusion that the United States is now a country filled with “day traders.”

Pitt, who is now 72 years old, served from 2001-2003 under George W. Bush and was the 26th chairman of the SEC. He explains that market volatility is extremely high at this time and investors are no longer buying into companies with thoughts of long-term holding.

Pitts comments have come shortly after Cboe Volatility Index, a key indicator for fear in Wall Street investment circles, caused a 10% tumble nearly two weeks ago. Many stocks have recovered much of the losses incurred but only after a series of bets were made by novice investors that measures for serenity in markets would persist.

A rush on the part of investors to invest in the Bitcoin phenomenon recently drove the price of the currency up to $20,000 before crashing to being valued at just about half that rate now. This has been fueled by what some in investment circles have titled FOMO, short for fear of missing out.

Pitt offers sound investment advice for newer investors facing today’s investing climate. Pitt instructs that it Is of utmost necessity to understand both what the company does and why you should want to invest in that product or service. He goes on to say that you must figure out if the company is more than just a name. When these requirements are satisfied, Pitt says it can be safe to invest in a company.

Pitt further explains that today’s crazed investing environment has been created by the multitude of investors who only seemed interested in taking part in the craze of the moment and do not have an idea of the true criteria they should use to select companies in which to invest.



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