Gen Z optimism about the stock market

[Anonymous]

I have watched some financial transparency videos of GenZers on YouTube and I must say I am impressed.

However, the way they sound so optimistic makes me worried a bit. Yes you should take as much risk as you can while you are young because you then have time to recover should a financial crisis happens.

Having said that, I think some degree of diversification is still wise no? But these guys are all in and extremely optimistic.

Do they think the market return of the post COVID era is the norm? Is that why they are so optimistic?

[Anonymous]

Heck it's not even post-COVID - it's been almost straight up since the 2008 crisis. Very easy to be optimistic when there's been no major hurdles. How they react when there are real downturns is more impactful than this slow steady melt up.

[Anonymous]

Anonymous wrote:Heck it's not even post-COVID - it's been almost straight up since the 2008 crisis. Very easy to be optimistic when there's been no major hurdles. How they react when there are real downturns is more impactful than this slow steady melt up.

Agree with this - it's all they've known.

[Anonymous]

Anonymous wrote:I have watched some financial transparency videos of GenZers on YouTube and I must say I am impressed.

However, the way they sound so optimistic makes me worried a bit. Yes you should take as much risk as you can while you are young because you then have time to recover should a financial crisis happens.

Having said that, I think some degree of diversification is still wise no? But these guys are all in and extremely optimistic.

Do they think the market return of the post COVID era is the norm? Is that why they are so optimistic?

Over the long haul, I'm talking decades here, the stock market has proven to be the best investment. It is true that the young have time on their side to recover from dips. Dips are a good thing and a buying opportunity.

[Anonymous]

They've only ever seen it go up... Even COVID was quickly reversed record highs.

[Anonymous]

What worries most is that they all want to retire by 40. That's not a realistic expectation. Are there people who have enough investments by 40 that would last them until they are 85? I'm sure there are people whose investments will last them 45 years. But I don't think we have that many of these people.

Someone will have to explain to GenZ that they will have to work behind the age of 40.

[Anonymous]

Anonymous wrote:They've only ever seen it go up... Even COVID was quickly reversed record highs.

+1.

[Anonymous]

Historically, the market returns 10% on average. I use a conservative 8% for modeling and use a Monte Carlo calculator to see chances of success or failure.

One can use data from a long time period instead of relying on one’s limited life experience.

[Anonymous]

They are nit wrong. The US stock market will continue to go up for as long as the US remains world number one military power.

[Anonymous]

Anonymous wrote:What worries most is that they all want to retire by 40. That's not a realistic expectation. Are there people who have enough investments by 40 that would last them until they are 85? I'm sure there are people whose investments will last them 45 years. But I don't think we have that many of these people.

Someone will have to explain to GenZ that they will have to work behind the age of 40.

You should google Coast / Chubby / FAT Fire. This path has been walked many times in many ways before 40.

[Anonymous]

Anonymous wrote:Historically, the market returns 10% on average. I use a conservative 8% for modeling and use a Monte Carlo calculator to see chances of success or failure.

One can use data from a long time period instead of relying on one’s limited life experience.

So pretty much 1929 style depression will be impossible. In other words no matter what for the foreseeable future the market will always be around 10% on average.

People have nothing to worry about. It will be up up up forever

[Anonymous]

Anonymous wrote:They are nit wrong. The US stock market will continue to go up for as long as the US remains world number one military power.

And if we are not #1, we will take the entire word down with us. It's either us or nobody else

[Anonymous]

Anonymous wrote:

Anonymous wrote:Historically, the market returns 10% on average. I use a conservative 8% for modeling and use a Monte Carlo calculator to see chances of success or failure.

One can use data from a long time period instead of relying on one’s limited life experience.

So pretty much 1929 style depression will be impossible. In other words no matter what for the foreseeable future the market will always be around 10% on average.

People have nothing to worry about. It will be up up up forever

Of course not. But it always comes back over time, and then some. And if that doesn’t happen, we have much larger problems going on that caused it (societal collapse). It’s best to invest as much as you can as young as you can because of the rule of 72 and because you have time to ride the waves. Also if you’re concerned about the oligarchy that means we’re moving towards a permanent k shaped economy where you really really want to own equities and property vs only make $ via a job. Gen Z gets that.