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Louis' Look: Youngsters Don't Need To Blow Up

January 31, 2021

From the desk of Louis Sykes @haumicharts

Call me a young naïve trader drunk on a bull market, but I don't think it's necessary in today's world to blow up in order to learn.

Hear me out.

Back in the '90s and early 2000s, you read a book and experimented with your account through trial and error. But today, we have widespread democratization of financial information that just wasn't around back then.

Given that this new generation of traders have endless routes of online resources and a completely transformed avenue of education, I don't think there's any real need for that.

Those who've been cynical on this trend have been dead wrong.

Retail has been the big winner.

The hedge funds got Tesla wrong. When TSLA didn't meet their standardized Wall Street mold, they didn't give a second look and proceeded to miss one of the best trades of the last few years.

And what about Bitcoin? It was retail that got to the party early on that one, too. For a symbolic change, you had the institutions chasing retail, not the other way around.

In Chamath's interview making the rounds, he argued that as much stick as the subreddit WallStreetBets has received, there are some sophisticated pockets of the community producing some high-level research.

Seriously, go ahead and get a Reddit account and talk to some of these people...

Back just 10 short years ago, you didn't have young teenagers flinging Growth stocks on their phones. If you hold the view that today's teenagers are on the same level as those just 20 years ago, I think you're seriously missing the point.

High school courtyards used to be dominated by cricket and footie. Now it's cool to have arguments with your homies about why Bitcoin will replace fiat. I can't even play a game of Counter-Strike without people arguing about Gold in the chat...

I think it's naïve to discount this growing adoption as froth. It's a lot more than that.

This movement (if you want to call it that) isn't just isolated to Dogecoin and high-flying Micro-Caps, it's already moving Silver, a $1.5T market... The Silver ETF $SLV took in a billion dollars of inflows on Friday after WSB named the Silver market as their next toy, doubling the record for this ETF.

Millions of teenagers (emphasis on teenagers) all across the world are coming together in a coordinated attempt to move specific markets. This is no longer just a meme...

With all these resources and information that those before them could only dream of having access to, I think the youngsters will surprise a lot of naysayers.

Call me bias, but I'm bullish on this generation.

I'd love to hear people's thoughts on this one! Was this just a hot take or is there something here?

Get in touch!

Louis

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