The teen-powered resurgence of active investing – By Felix Salmon (Axios) / April 8 2021
Never mind saving for retirement. Gen Z has embraced the stock market as a place to make short-term gains.
Why it matters: Day trading is back, turbocharged by social media and the invincibility of youth. Silicon Valley is paying attention.
What they’re saying: “Active investing is a natural extension of hustle culture, in which risk is embraced and failure is accepted (and even celebrated),” write Andreessen Horowitz partners Anish Acharya and Matthieu Hafemeister.
- “The psychology of American exceptionalism,” they write, combined with recent technology shifts, portends that “active investing is here to stay.”
How it works: The wisdom of crowds can be found on Reddit, where a new paper finds that stock-buying recommendations outperform the market.