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Let the young dudes carry the bags

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As if the world needed more evidence that young will cut their nose despite their face every time until they’ve been around the block a few times. Alas, the requisite number of runs around the proverbial block seems to be ever increasing with more technology; (read creature-comforts). No financial instrument is more iconic of younger consumers in 2020’s than “Bitcoin” (and “crypto-currencies” in general). The data below shows their poor judgement on full numerical display. Folks at JP-Morgan compiled Bitcoin market entry-prices and plotted them against both age-range and income. Consistently, younger ages were more excitable and got in at high prices.

It’s really too bad the quants at JP Morgan have not yet heard of error-bars but one can infer the significance of the differences seen in the data.

Irrational Exuberance

Looking through another window, new blood were more motivated by higher prices to the point where spikes in their participation consistently signaled the subsequent major drop in those prices. Over-excitability is a common trait of inexperienced both young and old. The sucker-born-a-minute rule works in all markets, financial and otherwise!

https://www.jpmorganchase.com/institute/research/financial-markets/dynamics-demographics-us-household-crypto-asset-cryptocurrency-use?utm_campaign=april7&utm_medium=email&utm_source=db

Bottom line advice

When in the market for food, sex, or money:

  • Don’t Panic
  • Don’t Get Excited
  • Avoid Scams, especially Crypto-currencies!