Excerpt from MarketWatch quoting DataTrek’s Nick Colas:
…. “Ever since they reached adulthood, millennials have gotten a lot of blame for a lot of things. Recently, through the dreary days of the pandemic lockdown, they’ve taken the heat for causing wild swings in the stock market as they day-trade their fiscal stimulus checks.
In a Thursday note, a boomer, DataTrek’s Nicholas Colas, spoke up for the young’uns. “In reality, they are no ‘dumber’ than baby boomers during the 1980s – 2007 bull markets,” he writes. Market structure was different, the technology is night and day, and the financial products of choice back then are dinosaurs now. But, in Colas’ words, “every generation does some dumb stuff, but then learns and comes out OK”.
Colas tracked flows into mutual funds, which exploded from 1984 to 1987, to make the point that “Boomers’ imaginations were just as captured by the 1980s bull market as millennials are by the rally over the last year.”
While mutual fund manager Vanguard had been offering low-cost index funds since the late 1970s, most money was flowing into actively-managed funds, Colas wrote”….
Read the full article here on MarketWatch!