In defence of millennial investors

THE URGEBC of the old to lament the folly of the young is as ancient as civilisation itself. “The beardless youth…does not foresee what is useful, squandering his money,” scowled the poet Horace, in 15. This year silver-haired Wall Street pros have tutted at the enthusiasm of youthful stock-pickers, who have taken to punting on markets in the lockdown. Manic millennials tapping screens piled into Hertz—after it declared bankruptcy. They dabbled with derivatives and bid up shares in Nikola, an electric-lorry-maker that later admitted to letting a prototype roll down a hill during a “demonstration” because it could not have powered itself. It may seem as if the only lesson is how not to invest. Yet as we explain this week, young people are changing how finance works (see ) and often for the better.Every generation leaves its mark, but those aged 56-74 today, known as baby-boomers, had an outsize impact on America’s capital markets. Thanks to solid economic growth, rising asset prices and fat pensions, they have accumulated piles of financial savings—about $600,000 on average, held in retirement accounts and other vehicles for shares and bonds. The asset-management industry has been built around this mountain of money. Specialists run pensions, index providers such as Vanguard let you track the market while snoozing, and wealth managers offer personalised service and perks to the rich. No wonder the number of jobs in finance has risen by 31% since 1990.