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IC The Cleanse
Retirement, Cryptocurrency, and Asset Allocation

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Proprietary Data Insights


FINANCIAL PROS TOP STOCK SEARCHES THIS WEEK

RankNameSearches#1AMC3616#2Tesla Inc2331#3Apple Inc1753#4Nvidia
Corp1744#5Amazon.com Inc1538

Nobody Wins Unless Elon Musk Wins  

Bruce Springsteen used to say, Nobody wins unless everybody wins. 

I doubt Elon Musk abides by the same motto. 

Love him or hate him, you probably agree Musk acts recklessly, without concern
for how his words and actions might impact everyday investors. 

The Lesson To Take From The Week That Was Elon Musk

You’re not Elon Musk. 

So don’t try to be like him, or any other ultrarich person. 

Don’t follow their trades, at least not impulsively with money you can’t afford
to lose.

That’s the lesson. 



Source: Google Finance

Who won - on purpose - as Twitter (TWTR) soared over these five days? 

Elon Musk. 

Anybody else who won unknowingly timed it right, was already long, or chased the
rally, day trading it for quick profits. 

You’ll never know who bought the top and are left holding the bag, waiting on a
rebound. 

A billionaire’s bag. 

Maybe The Worst Part

Yes, Elon Musk won. He’ll continue to win. 

But he reportedly broke the rules in the process.  

The Washington Post claims Musk publicly disclosed his Twitter stake 11 days
late, violating SEC rules. 

The SEC requires investors to report when they pass a 5% investment in a
company. Musk eclipsed 5% on March 14, but apparently didn’t report this right
away. 

In the interim, he bought more shares, accumulating TWTR at under $40.

If punished, he’ll face a relative slap on the wrist. 

A tiny fraction of his potential fine would render most of us insolvent.

Retirement


BEFORE YOU TRASH TALK GEN Z, MILLENNIAL INVESTORS READ THIS

Key Takeaways:

 * Cryptocurrency plays a role in younger generations’ retirement planning. 
 * Across age groups, investors expect robust returns from crypto.
 * Gen Z, millennials, and Gen X report impressive asset allocation.

 



Source: Investopedia 

Call this data from Investopedia’s recent survey of investors a sign of the
times. 

Millennials plan to rely on cryptocurrency almost as much as old school sources
- Social Security and 401(k)s - for retirement income. 

When asked which vehicle will generate the biggest returns, every generation
except baby boomers cited crypto.



Even though boomers put stocks and mutual funds ahead of crypto, they still say
crypto will beat index funds and ETFs. 

Noting that just under half of survey respondents report only having beginner’s
knowledge of digital currency, the study’s authors make a big deal about what
they call a "knowledge gap." 

This idea that lots of people own cryptocurrency, yet quite a few don’t
understand it. 

But here’s what the study didn’t make clear. 

 * How much overlap is there? Are the people who report holding crypto the same
   as the people who have less than advanced knowledge? 
 * Do most people who own stocks have an advanced understanding of how the stock
   market works anyway? Probably not.

The authors didn’t focus on the study’s most encouraging part of the study,
found in the following data:  



Here’s what I take from that chart. 

Impressive asset allocation.

In fact, younger generations appear slightly to considerably more diversified
across asset categories than baby boomers, who apparently know what they’re
doing. 

Granted many of these boomers are close to or in retirement, however I still
didn’t expect to see such encouraging levels of asset allocation among younger
investors. You can be at or around retirement age and still have a presence in a
variety of investments, simply by selecting more conservative, income-generating
holdings in each area.

We also don't know how diversified these investors are within asset classes. I
hope to find and dig into data on this and explore it in a future edition of The
Juice.

Would you have guessed that a larger percentage of Generation Z, millennials,
and Generation X own real estate investment trusts (REITs) than the 58-and-older
boomer crowd? 

I wouldn’t have. 

The cynic might say boomers are avoiding REITs due to a poor interest rate
environment. 

I say we’re - as per usual - giving boomers too much and younger folks too
little credit. 

Plus, the same story applies pretty much across the board for index funds and
ETFs. 

Young Investors Get A Bad Rap

No doubt the pandemic - with the rise of high-flying meme stocks and altcoins -
created an air of overconfidence, particularly among young investors. There’s
considerable academic research that shows being too confident in one’s own
ability can hurt the returns of traders and investors. 

That said, the trash talking Generation Z, millennials, and some of us in
Generation X take might be overdone. 

While the pandemic certainly gave folks who made bank on GameStop or Dogecoin
beer muscles, it also opened the stock market and other investment venues up -
for the first time - to large swaths of the population. 

Young Investors Want To Close The Knowledge Gap

Not only are younger generations diversified across asset categories, they’re
also hungry for knowledge. 

And not just on crypto. 

The survey revealed that Generation Z and millennials want to up their game in
areas where they lack knowledge. 

For example, Gen Z said they knew least about taxes. And 34% in this group want
to learn more, saying they consider taxes “the most important financial skill
they could learn today.” 

Doesn’t sound like something from an uninformed snot nose running their mouth on
Reddit. 

The Bottom Line: It’s easy to get caught up in the headlines, which tend to be
one of two things lately - bad economic news now and the flavor of the day (like
the latest Elon Musk news!!). 

However, it never, ever hurts to go back to basics. 

When I read this study on how different generations invest their money and plan
for retirement, I expected to throw shade on Gen Z and millennials. 

Turns out they have a solid grasp on one of the lessons we’re first taught as
investors. 

Keep a diversified portfolio. 

So, if you have time this weekend, look at your holdings. 

Reallocate and rebalance as necessary, across and within asset categories.

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