Younger, tech-savvy people are also more likely to play the digital currency markets and the high risk involved, Sunnarborg said. He estimates that about two-thirds of investors in cryptocurrencies are under age 40. <\/p>\n
That same age category is less likely to invest in the stock market. Just one-third of millennials, or adults currently aged 21 to 35, said they owned a stock in a Bankrate study last July. In contrast, 51 percent of Gen Xers, or those age 36 to 51, said they owned a stock, and 48 percent of baby boomers, ages 52 to 70, according to the survey of 1,000 American adults conducted for Bankrate by Princeton Survey Research Associates International. <\/p>\n
\"The next generation is suffering from the same thing that the Gen Xers suffered in the dot-com bust,\" Winer said. \"They're playing all kind of markets that they know nothing about.\" <\/p>\n
He was referring to the speculative trading that ended in the stock market's plunge in 2000. <\/p>\n
Traders and market strategists also worry that a \"fear of missing out trade\" has helped send U.S. stocks deep into record territory the S&P 500 has posted 24 record closes this year and is up 9 percent over that time. <\/p>\n
The difference is this time, typical measures of overexuberance may not apply to stocks. <\/p>\n
Bank of America Merrill Lynch's June global fund manager survey found that while a record 44 percent of managers say stocks are overvalued, their cash holdings have actually moved up to 5 percent, higher than the 10-year average of 4.5 percent. There's \"no irrational exuberance\" in contrast with the 1999 bubble, the note said. <\/p>\n
However, sluggish global growth and easy central bank policy could limit investment returns, while people remain wary about stock markets after the financial crisis. <\/p>\n
\"I do believe that in a market with few attractive alternatives, speculation tends to become rampant,\" said Daniel Alpert, a founding managing partner at Westwood Capital. \"And it almost doesn't matter what people choose to speculate in, as long as they believe there is a fool greater than they out there somewhere.\" <\/p>\n
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Originally posted here: Younger, tech-savvy people are also more likely to play the digital currency markets and the high risk involved, Sunnarborg said. He estimates that about two-thirds of investors in cryptocurrencies are under age 40. Continue reading
\nBitcoin speculators are the new day traders - CNBC<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"