It should be well known by now that the Millennial generation was screwed over by factors outside of their control. They were raised by coddling parents, taught from a young age to take on crippling student loans for degrees that would never pay off, and they came of age during the worse financial crisis since the Great Depression. So it’s no surprise that this is the first generation that clearly isn’t as well off as the previous generation.
However, Millennials won’t be able to complain about their lot in life for much longer. They won’t have a right to, because they’re about to screw themselves over this time around, and they won’t have anyone else to blame for it. It turns out that they haven’t learned anything from their parent’s mistakes, as they dive into Wall Street and load up on tech stocks.
Young adult investors are buying shares in tech companies and avoiding dividend-yielding stocks favored by the general investing population, according to Steve Quirk, executive vice president of TD Ameritrade‘s Trader Group.
Quirk, citing a TD Ameritrade report, said millennials’ top stock is Apple, which in early May paid the world’s biggest dividend. But none of the rest of their favorite five stocks — Facebook, Amazon, Netflix and Tesla — pay dividends.
Tesla doesn’t crack the top 10 list for the general population, he said.
Quirk said these investing preferences make sense as long-term strategies for young adults with many years to invest ahead of them.
“Most of them are very interested in technology, but the biggest difference would be the dividend-yielding stocks,” Quirk said on CNBC’s “Closing Bell” Monday.
That should end well. They’re buying lots of stocks from Tesla, a company that can’t sell a single car when the government stops subsidizing them. They’re loading up Netflix stock, which despite costing over $150 per share, actually only earns about 40 cents per share. They’re betting their meager life savings on hideously overvalued social media stocks like Facebook, which has a market cap that is 225 times larger than its yearly cash flow. It turns out that when a bunch of barely-adults buy stocks on their smartphones, they don’t do their research. Surprised?
In any case they’d be naive to buy any stock, much less tech stocks, which are arguably the most overvalued on the market. However, the rest of the stock market doesn’t look much better. In fact, it appears to be primed for a serious collapse.
Since July 2012 – so over the past five years – the trailing 12-month earnings per share of all the companies in the S&P 500 index rose just 12% in total. Or just over 2% per year on average. Or barely at the rate of inflation – nothing more.
These are not earnings under the Generally Accepted Accounting Principles (GAAP) but “adjusted earnings” as reported by companies to make their earnings look better. Not all companies report “adjusted earnings.” Some just stick to GAAP earnings and live with the consequences. But many others also report “adjusted earnings,” and that’s what Wall Street propagates. “Adjusted earnings” are earnings with the bad stuff adjusted out of them, at the will of management. They generally display earnings in the most favorable light – hence significantly higher earnings than under GAAP.
This is the most optimistic earnings number. It’s the number that data provider FactSet uses for its analyses, and these adjusted earnings seen in the most favorable light grew only a little over 2% per year on average for the S&P 500 companies over the past five years, or 12% in total.
Yet, over the same period, the S&P 500 Index itself soared 80%.
It doesn’t take much research to realize that the stock market, and tech stocks in particular, are about to crash and burn. And yet members of the most research savvy generation failed to do their homework, and sunk their money into the most overvalued stocks. They fell for the same Wall Street hucksters that burned their parents in 2008. Now the poorest American generation; a generation that is still struggling to buy homes and start families, is about to lose what little they have.
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It will affect Liberals and snowflakes the most. They will be looking for safe cribs, diapers and someone to pacify the hell out of them.
Long on diapers and pacifiers.
Baby Boomers are gonna be hit worse.
Here is why, they will soon be approaching convalescent and hospice centers. But only after they squander every last penny of multiple generations of toil.
when they arrive, the foreign nurses will treat them less than great. And the millennials will not care, as the boomers had jobs handed to them in the 60s -90s and were paid beyond comprehension to millennials and kids today. why should they care when boomers spout stupid played out false paradigms. They can not admit they were all born with solver spoons relative to ANY other generation. and due to SEX/DRUGS/Rock N’Roll combined with their anti-communist brain washing gone too far “ME” generation. WHich is what the old timers used to call them.
Everybody looks like a Genius in a Bull Market. Todays stock market is double of what natural fundamental would support. Its all a speculative Ponzi scam from P/E Ratios of 600 to 1. People have no idea they are being scammed. When the plug is pulled and those pros in the know, short the whole market on a given day and the Market valuation drops 40%, the amateurs will get their clocks cleaned. Back when I was Day Trading during the Dot Com implosion, it taught me some great lessons. Don’t try to catch calling knives and Pigs Get slaughtered. That’s when Greenspan kept raising interest rates. I got out with minimal damage.
Best advice, is GET OUT NOW, and take your profits and buy some tangibles, like Land and PM’s, and or pay off all your debt or house. Then wait get back in, after the big crash. Head my advice or get hammered.
I am totally out of this stock market. I invest in my self and my property. Something I have a lot more control of than the roulette wheel betting it all on Red. Sometimes hard lessons is what it takes to wake up, when your bank balances are zero and you have a pile of creditors writing you nasty letters ready to take everything else tangible away.
They’ll learn the hard way like the previous generation. A “come uppance” as the saying goes. Bodies will be splattering off the pavements like rain drops.
Betting on red at least has a near 50% of winning… Stocks now, do not.
Betting on stocks, would be closer to betting the ball disappears and teleports to another plane of existence.
One thing that is “counter” of the global economy: Bitcoin. And unlike gold/silver, you can SPEND bitcoin. More and more places are accepting it… and during a stock crash, I’m betting bitcoin will wash over the world like a warm blanket.
Bitcoin and crypto currencies are xrashing. And when the grid fails and xrypto crashed in a vig poof. You got NOTHING. ZERO. Then you can go call your Congressman and whine.
Cracsummskulls; bingo!
I once interviewed some Wall Street guys back in the early 90s. They were unbelievably frank and candid (I don’t think anybody would do that these days). But essentially everything they told me then, has played out since. They painted a picture from their data that totally described the world we are in today and also each crash we have had. It was like there was a plan or something. Based on what they told me, there will be another pump and dump to clear out the remaining funds in pensions, mutual investments (such as hedge funds etc.). That what has been going on since the early 90s has been a deliberate move to drive up a market or asset and then bring it down and grab assets or wealth from the suckers who get cleaned out. There are many such fruits for the picking: emerging markets, especially China; property markets in Canada, Australia, Scandinavia. The remaining Boomer assets in property and pensions. Clean it all out and horde the cash.
They also described why: it is a multigenerational war essentially. Long-running wealthy elites never liked the egalitarian era that emerged after WWII. They never liked seeing phutzs get rich or have comfortable lives on printed money. But they knew governments would do this to buy votes. So they decided to use bubbles and the markets to get revenge and take back that money in increments. That is what has been going on. Also notice they have gamed the system to shovel insane amounts of money to anything that can control the population: Silicon Valley, the MIC, Bio-Science. They have also used the morlock races and ethnicities to lower pay and destroy communities. That is by design. And trust me, they have no desire to lift those people up to be the new middle class. The rug will be pulled long before that will ever happen.
The whole financial system is like a casino game. Putting your money in stocks and keeping them there is like playing roulette and never cashing in your chips. At some point the chips will plummet. You only win by choosing when to cash your chips and putting your money into assets that have intrinsic value. The assets are useful in their own right. Food, energy producing equipment, first aid supplies, etc keep you alive when SHTF and WROL. Technically speaking, ownership rights are a legal concept and require a government system that recognizes you as the “owner”. The government supports your ownership rights. If the government system collapses, you are on your own. You will own only what you can keep through violence.
In the Great Depression, the stock market collapsed in late 1929. If you had cashed out your stocks prior to the crash, you had a whole lot of dollars in your bank accounts. Then the banks collapsed several years later and you lost the dollars. If you had withdrawn your money before the banks failed you won. It was a matter of timing. Stock Certificates and currency are legal concepts based on the continued existence of rule of law. You need your assets in a form that has an inherent value. They keep you fed, warm, and safe. Good luck to all of us!
Beware, Anything written on Paper is just an IOU or Promise or Fraud. If you cant hold it in your hand you don’t really own it. Digital balances can be hacked, or confiscated, and seized and go poof goodbye instantly by the click of a mouse by someone like say, The IRS.
Those young investors will be wiped out as the decline in the mkt will be faster than ever before and the recovery next time will be long and slow.
if you didn’t get rich off this current ride, you’re not getting rich from the mkt.
lena
“if you didn’t get rich off this current ride, you’re not getting rich from the mkt.”
With the exception of something unique like S&W Holding Company a couple of years back you are correct in predicting a massive correction.
Oh when it pops, it will NOT be pretty at all. The entire market is a huge fraud. The stock prices out there are so beyond ridiculous and so over valued…
Snowflakes, Millennials and Sovereignty
America now has two generations that dumber than rocks. Imagine if China were to offer them this choice, ‘Choose between joining China or a discontinuance of all goods ‘Made in China’ including electronic gadgets. They would not hesitate to sell their sovereignty and souls to join Communist China.
As dumb as Snowflakes and Millennials are, the greater fools are their parents who allowed government indoctrination schools to control every aspect of their child’s life for 8 hours every day.
To some folks we homeschooling families may be backward, rural, old-fashion people. But we know child abuse when we see it. And we refuse to allow it!
Homeschooling is not stupid. It is smart. Never thought I would say that. I graduated from a public high school, went to a junior college, received my degree and teaching credentials from a pricey private school. I taught school but there is so much useless red tape in public schools, some of the private schools do it too, taking notes upon notes that mean nothing, it is crap.
You can’t buy stocks if you don’t have a decent income. And the government made sure fewer people have access to decent paying jobs.
If you have a 401K, you likely own stocks.
The market is at an all time high, if there’s a money market option in your 401K half at least should be in it.
If the market crashes, buy back into the market slowly over time once you think it’s hit bottom.
If you see hyper inflation the market is the best place, but be invested only in companies with good finances and little to no debt.
When you factor in the number of them that are too busy taking selfies against their gaming scores, at 10AM in their parents basements? That expected stampede has turned into a whimper.
401K holders prop up the stock market for the pros to pillage at will. How fast can you withdraw or trade within your 401K and while you are working at a job? Click of a mouse or written request by letter.
I don’t expect to be found useful when old and gray nor the money to be there in the decades to come. Life is about experiences. I don’t pretend to think that I know better.
I’ve seen families torn over having to divide the left overs of relatives gone. It’s a nasty realization of what ordinary, selfish humans are capable of.
I’ve always admired the bonds of families overseas, in other countries and cultures, whom had nothing but themselves to look after.
On average, outside of clean your room or do the dishes, we have no real farms nor real chores to teach our children on how to be responsible and self reliant. We are three generations deep into this welfare now,(there’s more than one kind of it). You have to purposefully go out and create an environment that will teach them vital things. My father was in scouts, so I was in scouts and so were my sons. Grow a garden, fix the truck. Stop complaining. Put down the game-boy, watch and learn.
How many father’s bother to do this with their sons? Very few from what I’ve seen. Most will chose the couch and don’t bug me after a hard days work and form a relationship with the TV over their own flesh and blood. That is not how life works. Sleep when your dead.
My millennial son went to trade school on his own. Got a job, on his own. Bought a car, on his own. Moved to Texas for a better job for his new wife and son, on his own. The trick is not to be an encyclopedia of knowledge, it’s to be brave enough to stand up and use the spine that you were born with. If they don’t see that, they won’t be that.
Everything has it’s price. Even ignorance is a debt that only earns regrets.
All debts eventually come due.
http://www.quickmeme.com/Scumbag-Baby-Boomers/
http://www.quickmeme.com/Old-Economy-Steven/
Let’s see…
airlines
dot coms
real estate
colleges…
Now, it’s because of the crash that hasn’t happened, yet.
Who is writing, dear millenials. Boomers haven’t invented a civilization or even maintained it — not the 99% of them. it was financed, creatively, and consumed, down to the last couple of bread crusts, they threw you.
Don’t forget subprime auto loans bubble also. Student loans bubble defaults.
In a crash, short car companies on the way down, but be ready to flee before they declare bankruptcy and leave you with nothing.
In 2008 I made a killing on Ford in the recovery, but this time I’m not so sure a recovery will be in the works so quickly or robustly. Helicopter drops of cash (QE) just aren’t working so good anymore. This is exactly what happened to the 1930’s German economy.
Sounds about right to me.
Most Baby Boomers lost as much as 40-percent of the value on their 401Ks during the Crash of 2008-09.
Right now, your odds of winning the Illinois Lottery (and being paid) are better than retiring.
Good luck, suckers.
The millennials are idiots, the baby boomers are morons, generation X are retards; but the fucking (((3ews))) are geniuses.
I listened to a recording of a brief radio address by Dr. William Luther Pierce. He made an observation regarding the criminal con artists who scamed the American public about a decade ago: when someone scams a million dollars it could be anyone, but when someone scams hundreds of millions of dollars guaranteed it will inevitably a (((3ew))).
Then he asks: Why is this? Is it because he, the (((3ew))) is so smart?? No, he says. It is because (((3ews))) always work together. They are organized. They work together because they’re whole existence is a form of Organized Crime.
The Stock Market is a racket. (((3ews))) manipulate it so that they get rich and everybody else gets fleeced.
__
That’s why I always wear a Star of David when doing an in-person funding round. I also take a holiday in Israel just before so I have some stuff to name-drop. Works a charm.
Test — Jew Jew Jew Israel Zionism
“The use of the “echo” originated from a 2014 episode of The Daily Shoah, a podcast produced by the alt-right blog The Right Stuff. The podcast includes a segment known as the “Merchant Minute,” where Jewish names are spoken with a cartoonish echo effect to single them out. The editors of The Right Stuff explained that the use of an echo, represented in text using triple parentheses, was an internal meme meant to symbolize an opinion that the actions of Jews in the past cause their names to “echo throughout history,” stating in its lexicon that “echoes repeat the sad tale as they communicate the emotional lessons of our great white sins, imploring us to Never Forget the 6 GoRillion [sic].” From the inside out, each parenthesis represents perceived Jewish involvement in harmful media, mass immigration, and global Zionism.”
— wikipedia
It is essential, for a totalitarian ideology, to have an enemy! When you want to divide and conquer “the family unit(y) – the best way to do it is to blame men for being rapists and all that.
For a socialist revolution, you need some rich people to blame for everything.
But the Jews – wow man – they are like the ultimate evil. Very good “enemy” to use on your way to totalitarian tyrrany.
The whole convoluted mess is going to come apart at the seams in November. Mark my words.
Matters not what generation you are. This country is toast. Shining City On A Hill, my ass.