Gen Z invests their money by relying on tarot and astrology and wants to be very successful with it. TikTokers show how much money they make with it. But experts warn against such tricks.
Anyone who wants to invest money takes their time and asks experts in the market for advice. However, many young people seem to take a different path: they consult the stars and the sky. And this is said to work surprisingly well.
Generation Z includes people born between 1997 and 2012.
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TikTokers show how much money they make when they bet on astrology
What are the people doing? The English-language magazine Fortune.com reports on several Gen Z personalities who rely on astrology and tarot to invest money.
Stefaniya Nova is a 25-year-old New Yorker and TikToker who uses astrology, tarot and intuition to guide her day trading. Here’s what she says:
After scanning the market from 8:30 a.m. to 9 a.m. and choosing the stock I’m going to trade that day – today it was Amazon – I draw a single card to confirm my decision or get some guidance. Today I drew the Ace of Cups, which represents abundance; that gave me the confidence I needed to trust my strategy.
Apparently it all works, because the TikToker backs up her bets with numbers:
And she is not the only one who promotes lunar cycles as a way to buy Bitcoin and astrology as a way to win $440,000 in crypto trading. And that is exactly what Gen Z seems to be excited about. But not everyone is convinced. And the figures cannot be independently verified.
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Expert says: People have always relied on luck and chance
Expert warns: Samuel Hartzmark, Professor of Behavioral Finance at the Carroll School of Management at Boston College, explained that one should be cautious, especially if one wants to invest money in the financial markets:
In financial markets, one should not make decisions based on perceptions. If these things really predicted higher returns, then there would be many market participants who would probably use them as signals in their portfolio.
He points to a 2004 study conducted by researchers at the Graduate School of Management at the University of California, Davis, and National Chengchi University in Taipei, Taiwan, which found that out of 130,000 individual investors, more than 80% lost money in the practice.
Because the probability of success in day trading is already so low, success cannot be attributed solely to sophisticated investment strategies, says Hartzmark. Part of success will be down to luck and circumstance. For the few who get rich through unconventional strategies, it is easy to attribute their wealth to that. It is a phenomenon that has been around for hundreds of years.
Gen Z is the generation that invests most in the financial market
Why do young people invest in the financial market at all? The most common reason given is financial insecurity. Many young people are afraid that their future is uncertain or that they could be in a very bad financial situation.
Driven by the fear of missing out, over 70% of Gen Z own stocks, according to Nasdaq: more than previous generations at the same stage of life. With various apps, Gen Z also has the ability to invest inexpensively and conveniently, leading them to act earlier than older generations.
More about Gen Z: One trend seems to be particularly popular among young people of Gen Z: job ghosting. This is now shown by survey data from a platform that surveyed applicants and companies: 78% of all applicants are said to have deliberately ignored the employer: There is a popular trend among Gen Z: They do not go to interviews