Key insights
- The article discusses the perception of widespread wealth generation from recent market rallies, contrasting it with data suggesting most retail investors have made modest profits ($1000-$10,000). It highlights a potential mismatch between reality and narrative, warning that the idea of everyone getting rich could be harmful, especially to young, inexperienced investors taking on debt. The author expresses personal luck in making $30,000 but emphasizes it's not life-changing. The piece offers an opinion on market sentiment and investor behavior rather than a direct market prediction.
I'm Korean and it seems like all everyone is talking about is the market.
Recently I saw an interesting study - that majority of people who actually invested in this market only invested $1000 or less, and people who invested $100,000 or more is only 7% of total investors. People who invested $200,000 or more is even less than that.
It means even if you were somehow able to ride every single rally, most people probably made around $1000~$10,000 in profit. It's not bad, but that's hardly life changing. I personally made around $30,000, and even though it might seem like small change to some people here, I consider myself incredibly lucky.
Yet simultaneously we hear about how everyone is becoming a millionaire. So obviously there's a mismatch. Personally I think the growing narrative that everyone else is getting rich except you is harmful - especially to young people who already feel squeezed for opportunity to better their lives the "traditional" way. I know too many young people who are taking out loans and jumping into investing with no experience, which is dangerous.