- The Blockchain Breakthrough
- Posts
- Front run the herd
Hey everyone,
Hope you’re having a good weekend. It's rainy here, but it's been relaxing.
Let's talk demographics – the unsung hero of investment decisions. Demographics are statistics that describe a population of people. In this case we’ll focus on the age distribution of a population. This is one of the…if not the…best investment tool out there.
When you see a chart of a population by age for a country, what you’ll often find is that generations are often different sizes.
So how can we use that for investing?
We can use it by looking at the largest generations, anticipating what they’re going to do next, and front running it by a few years.
Lets look at the US as an example. The chart below shows the population distribution by age as of 2020. The two bulges in the graph are boomers and millennials. We can use this to anticipate what boomers and millennials might want in their next phase of life, and invest in associated assets.
Data source: US Census
Let’s go through an example.
Over the last few years real estate in Florida has taken off like a rocket ship. Why is that the case? It’s partially due to Boomers hitting retirement age. Florida is a very popular place for retirees to live. We could have anticipated this by looking at demographics.
Now, let's pivot to crypto.
The Motley Fool had done a survey on types of investment products owned by different generations. Here are the results.
Surprise, surprise – it's not exactly your grandma's cup of tea. But millennials? Oh, they're all over it like avocado toast. Millennials are famous for being the broke generation, but over time they will build wealth. And they’re likely to continue buying crypto with that wealth.
This is long term bullish.
Fyi - this doesn’t necessarily mean every crypto will go up, but that the value of the asset class as a whole likely will.
So, what's the bottom line? Demographics aren't just numbers on a chart – they're your secret weapon in the investment game. And they support long term growth of crypto asset prices.
Cheers,
Justin
P.S. Premium will go out on Monday this week
P.P.S. for an analysis on whats currently going on in crypto markets, and where they’re likely to head next, check out our premium article.
The info is too valuable to share broadly, so we limit the people that can access it.
If you’re seeing this you’re subscribed to our basic plan
In our basic plan, we chat about a different crypto topic every week to boost your investor know-how. Easy peasy!
Looking to up your crypto investing game?
Check out our weekly premium subscription to help you maximize your crypto returns. The premium subscription includes:
Our weekly review of current crypto market risks and opportunities. It’s the same process we use to maximize our returns. In the past it has helped us do things like:
Buy crypto at the bottom of the last cycle
Sell crypto near the top of the last cycle
This process uses economic conditions, on-chain metrics & technical analysis
You also get our current crypto portfolio and recent transactions
If you have any thoughts, feedback, or topics you’d like us to cover - feel free to respond to this email.
Visit our website to see all prior articles:
Disclaimer: The Blockchain Breakthrough is not financial advice. Please do your own research.
Reply