🍋 Millennials Go Crypto

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Short Squeez
December 31, 2021

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“This New Years I was going to make a resolution never to be late again, but I didn’t wake up until January 2nd.” —Melanie White

Good Morning! The stock market is getting no days off this holiday period. For the first time since 2010, there will be no US stock-market closure in observance of New Year’s Day which falls on a Saturday. Markets remain open today and also on Monday, January 3rd.

We are launching our referral program today with prizes for certain milestones (see bottom of email). Invite your friends to sign up with your unique referral link. The aesthetics will improve once the intern comes back from his PTO. We will also be sending prizes to all those who qualified based on the giveaway earlier this month.

Today is the last day of the year, which also means it's the last edition of Short Squeez in 2021. We've come a long way since launching this newsletter only 10 months ago and today have a community of 30,000+ readers. We want to thank each and every one of you that has helped make Short Squeez a success. We're only getting started and have big plans for all of you for next year. Happy Holidays and Happy New Year! đŸ„‚

1. Story of the Day: Millennials Go Crypto

2021 was a good year to be an investor in just about anything but gold (apparently Lego is a better investment than gold). Stocks had a blockbuster year: the S&P 500 is up 28%, Nasdaq 22%, and DJIA 19%.

2021 was also the year Millennials and Gen Z came of age as investors, and these young investors are the most bullish about the market in 2022 compared to boomer peers.

CNBC’s millionaire survey (750 Americans with investable assets of $1+ million) finds some interesting stats:

  • More than half the millennials said at least half of their wealth is in crypto and 48% of millennials expect to increase their crypto investments over the next year

  • 52% of millennials think the S&P 500 will be up by at least 10% next year (39% are even more bullish, expecting those gains to be above 15%). This is more than triple any other generation’s expectation for stock gains over the next 12 months (lmfao)

  • 61% of millennials believe the economy will be much stronger next year; in all 93% believe the economy will be stronger, versus 41 percent for all millionaires.

Short Squeez Takeaway: Many market commentators believe the party is about to end next year – the extraordinary returns of last year cannot be sustained. Another CNBC survey of 400 investments professionals finds 55% expect the S&P to return less than 10%, and more think the index will either be flat or down than up by more than 10%.

Historical data shows that they could be proved right as Fed gears up to raise rates next year. In the 12 months, once the Fed starts raising rates at least three times, the S&P 500 rose a median of approximately 3.5%.

Source: CNBC

2. Markets Rundown

Stocks ended lower Thursday even as the Labor Department data released Thursday showed new jobless claims fell in the week ended Dec. 25.

Movers & Shakers

  • (+) Kazhun ($BZ) +12% after Jefferies initiated coverage of the stock with a buy rating and a $44 price target.

  • (+) Virgin Galactic ($SPCE) +6% as Virgin Orbit, its satellite-launching spin-off, geared up to begin trading Thursday on the Nasdaq.

  • (–) Biogen ($BIIB) -7% after Samsung denied a report in South Korean media that it was in talks to buy Biogen.

3. Top Reads

  • TikTok moderator sues over 'psychological trauma' (BBC)

  • Robinhood to expand options contract feature to more traders (BB)

  • US CDC says people should ‘avoid cruise travel, regardless of vaccination status’ (CNBC)

  • Texas ready for cold weather after inspecting 302 power plants (BB)

  • Walmart drew one in four dollars spent on click and collect — with room to grow in 2022 (CNBC)

  • UK bank mistakenly pays out $175 million on Christmas Day (CNN)

  • Warren Buffett tells Bernie Sanders he won’t intervene in strike at Berkshire-owned company (CNBC)

  • Apple puts Indian iPhone factory 'on probation' (BBC)

  • Tesla recalls 475,000 vehicles due to camera and front trunk issues (CNN)

A Message From Sweater: The Venture Capital Fund for Everyone

Sweater is opening venture investing for everyday investors. 

The last decade has seen a rise of retail investors keen on taking investment power into their own hands. Every year, more technology and resources allow investors (like you!) to make well-informed decisions for where their money goes and how it grows.

But the most lucrative long-term investment strategy—venture capital—is still out of reach for the majority of investors, until now. 

Venture capital is no longer just a club for the uber wealthy—it’s our time to put stake in the companies we want and know will change the world. Sweater, the VC Fund for everyday investors is coming soon. 

4. Book of the Day: The Basic Laws of Human Stupidity

Throughout history, a powerful force has hindered the growth of human welfare and happiness. It is more powerful than the Mafia or the military. It has global catastrophic effects and can be found anywhere from the world’s most powerful boardrooms to your local bar. 

It is human stupidity. 

Carlo M. Cipolla, noted professor of economic history at the UC Berkeley, created this vitally important book in order to detect and neutralize its threat. Both hilarious and dead serious, it will leave you better equipped to confront political realities, unreasonable colleagues, or your next dinner with your in-laws.

“Always and inevitably everyone underestimates the number of stupid individuals in circulation."

5. Short Squeez Picks

6. Daily Visual: 12-Month Change in Consumer Price Index

Source: Axios

7. Daily Acumen: Boredom

When was the last time you felt bored? Were you on a never-ending Zoom call, or in a mind-numbing dinner party discussion? While many believe boredom is a result of our increasing leisure time and reliance on technology, it has been a problem since ancient times.

Although boredom is an experience shared by all of us, some of us are more susceptible to it than others. The feeling of boredom is an indication that it is time to make a change. By using boredom as a springboard, you can embark on something new and exciting.

If you are bored and have no idea what to do, try something completely different. Learn a new recipe, take a bike ride, or paint a picture. You might not be comfortable with the activity, but it will take away boredom and might spark a surprising interest. 

Alternatively, you could... do nothing! Boredom can be viewed as a luxury. It can lead to a sense of peace that may even inspire you to dream of new and more creative ways to improve your life if you are able to endure the initial restlessness.

Source: NessLabs

8. Crypto Corner

9. Memes of the Day

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