Jim Rogers: When this bull market ends, ‘you don’t want the 26-year-old around’
When, and if, the big market crash finally comes — and some say it’s coming any day (or week, or year) now — the last person you want at your side is a millennial.
That’s according to veteran investor Jim Rogers, who doubled down on a forecast for the market meltdown to end all meltdowns in a recent interview with Real Vision TV.
“When things are going right, we all need a 26-year-old. There’s nothing better than a 26-year-old in a great bull market, especially in a bubble,” because they’re “fearless,” said Rogers. To youthful investors, a bull market will never end, and they will tell you exactly why — and believe what they’re saying wholeheartedly.
‘So in the bull market, you’ve got to have a 26-year old. But when they end, you don’t want the 26-year-old around.’
Jim Rogers, Rogers Holdings
Rogers explains how he once had a student who made around 500% two years running in the late 1990s, and his firm ”loved him.”
“The next year he lost everything for this company. They didn’t love him anymore,” recalled Rogers. “He was a 28-year-old.”
That’s not to say that there were no 20-somethings who emerged in good shape from the crashes that hit the markets in years like 1987, 1997 and 2000. But many younger investors and traders just don’t survive the meltdowns as older workers might. The current bull market, which turned 8 years old in March, is the second longest, and warnings about a meltdown, like that from Rogers, have piled up.
Read: Key lessons from the second longest bull market, in 11 charts
“They make a lot of money. They don’t know why they made money. So they don’t know why they lose money. They don’t know what happened,” said Rogers.
According to the Pew Research Center, the millennial generation includes those born in the two decades after 1980, so the oldest millennials would have been about 28 at the time of the 2008 crash, and 35 during the “flash crash” of August 2015.
It is possible, too, that this group of investors might actually be more wary of a crash than others, judging by a Bankrate survey this summer. Only 13% of millennials surveyed by Bankrate said they’d invest in the stock market, while their baby-boomer grandparents said equities were the No. 2 investment for them, just behind real estate.
The younger group may have been marked by graduating from high school at the time of the tech-bubble bursting in 2000, around the Sept. 11 attacks, or at the time of the 2008 crash.
Yet there may be some less-than-savvy millennial investors out there, making mistakes by dog-piling into the same stocks. A separate survey conducted by TD Ameritrade this summer found that millennias favor Facebook FB, -0.33% , Amazon AMZN, -0.65% , Netflix NFLX, -1.18% and Tesla TSLA, +0.82% , alongside their No. 1 stock pick, Apple AAPL, -0.56% .
Along with Facebook, they were also drawn to such social-media stocks as Snapchat parent Snap SNAP, +3.42% and Twitter TWTR, +1.96% . But there’s wasn’t a dividend-paying stock, favored by the wider investing community, among their picks, Steve Quirk, executive vice president of TD Ameritrade’s trader group, told CNBC at the time.