Salon Newsreal | Baby bulls

A L S O T O D A Y
[ M E D I A ]
Greener pastures
By Jenn Shreve
Out of the growing glut of finance mags, one zine is poised to capture the expanding market of young investors.

T A B L E+T A L K
The tobacco companies decide to fight back. Is there any hope for a mutually agreeable tobacco settlement? Clear the smoke in Table Talk's Politics area

D A I L Y+Q U O T E
Take this, Uncle Sam!

R E C E N T L Y
White House jumps into Starr "conflict" fray
By Jonathan Broder and Murray Waas
Clinton's lawyer asks Starr to recuse himself from Hale investigation
(04/14/98)
Case closing
By Bruce Shapiro
The Justice Department's "request" that Kenneth Starr investigate his own chief Whitewater witness is one of the last nails in the independent counsel's coffin
(04/13/98)
The other Republican smear
By James C. Hormel Jr.
The son of meatpacking heir James Hormel describes the homophobic campaign waged against his father's nomination as U.S. ambassador to Luxembourg
(04/10/98)
Arkansas trooper considered demanding money from President Clinton
By Murray Waas
Source for Los Angeles Times' "Troopergate" story discussed trading silence about Clinton's private life for hundreds of thousands of dollars
(04/09/98)
See some evil, hear some evil ...
By Gene Lyons
Kenneth Starr says his only concern is the truth. Then why is he giving free passes to people who have lied and broken the law?
(04/08/98)
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BABY BULLS | PAGE 2 OF 2
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Green's Kurson traces his generation's romance with the market in part to its lack of confidence in the Social Security system. While Kurson himself thinks the concerns are exaggerated, his theory is supported by an American Stock Exchange survey showing 88 percent of 25-to-34-year-olds questioned don't think Social Security checks will be a source of income in their old age.
Kurson also points to the popularization in the mid-1980s of 401K plans and heavily tax-advantaged IRAs and to the cessation of adequate company pension plans. Add to the recipe a bull market that won't let you lose and you have the making for a real cultural shift.
Ethan Garber became interested in the stock market at 17 -- while working at a Pizza Hut where the TV was permanently tuned to the Financial News Network. After several months, Garber found himself not only absorbing the information but also becoming entranced by it. Soon thereafter, a relative gave him a subscription to the Wall Street Journal, and it wasn't long before Garber had made his first stock purchase -- shares in the Financial News Network -- and was managing a small trust fund left to him and a dozen family members.
Fifteen percent annual returns and a stint at Wesleyan University followed, where Garber spent more time on pay phones talking to brokers than in classrooms. According to Garber, his obsession didn't go over too well with college peers. He described Wesleyan as "not a school that celebrated capitalistic pursuits." Recently, however, old college friends have begun popping up, seeking his financial advice and showing real interest in the market.
"There's been a dramatic shift both in the level of topical knowledge people have and in their compulsion to be involved," said Garber, who's now a research analyst at an investment bank.
Part of what Garber is experiencing is undoubtedly the aging of his peers, young 20-year-olds moving into their late 20s and early 30s who are beginning to worry about financial security. But where young people of the previous generation were known for their disdain of worldly matters, this generation seems not only willing to pursue material wealth but thrilled by the chase. It's a fact that's been noted by executives at the online brokerage E-Trade, who refer to Gen Xers as "young fogies" because they're so consumed with financial matters.
"It's almost like a sport," said O'Neal, the engineer in Atlanta. "I love the balance sheets, the statistics -- I have at least 200 annual reports in my house, I download financial information all the time. It's a game for me, but it's a game with the potential to set me free financially."
Gapasin, the engineer from San Jose, said the buzz of stock market talk and the excitement of stock market riches hovers over social interaction. Of course, that's Silicon Valley, where IPOs are as common as daylight. But even people in other industries, far away from semiconductors and Wall Street, report a similar buzz.
"I think the kind of people who would have had disdain for American business 20 years ago now are involved in it," said Daniel Greenberg, a 27 year-old literary agent in New York who specializes in business books and who himself began investing in late 1996.
Like Kurson, Greenberg's background is not one that encouraged an interest in the stock market. His parents didn't invest primarily for financial reasons but also because it wasn't part of the family culture, which leaned more toward socialism then stocks. But Greenberg found a latent interest in the subject when he began working with authors of business books.
Last year, Greenberg put $5,000 into an IRA and a smattering of stocks, and he's seen a return of about 20 percent, modest by today's standards but nothing to scoff at. Like many 20-something investors, Greenberg is self-taught, and he displays a sophisticated knowledge of the stock market and a zealous dedication to the Wall Street Journal and the New York Times business section. "I know I'm riding the momentum," Greenberg said, acknowledging both his success as an investor and his passion for the market. "I'm not naive to the fact that this crazy prosperity is what's driving the fascination with money and American industry."
But is it possible the excitement of this wild time has created an atmosphere too partylike and that this new breed of investors doesn't fully understand the attendant risks? What happens when the music stops?
"I know people who think the Constitution guarantees them a 20 percent return," said Green's Kurson. "It's dangerous because people are going to be in for a grave shock."
While many young investors, like Greenberg, insist they're in it for the long haul, some observers aren't so sure. Kurson thinks Generation Xers may change their tune when a prolonged downturn occurs. "We're on autopilot now," he said, "but if there's a long, say, two-year drop in the market, people will say, 'This is for the birds.'"
While most young investors don't anticipate becoming fed up with the market, they're already growing sick of working. Money for other generations has meant security, but for this generation it seems to represent a particular brand of freedom. Gen Xers are planning for their retirements like everybody else; it's just that they're aiming to be 35 at the time rather than 65.
Gapasin, the San Jose engineer, is hopeful he'll be able to retire in his mid-30s. He's not sure what he wants to do, but he's thinking about becoming a teacher in a small town. Or traveling. Or driving a Porsche.
"It's not the money itself," Gapasin said, "that's just the means to an end. I don't want to wait until I'm old to do things like travel. I want to go while I can still rough it. I want to go while I'm still young."
Kurson takes a blunter tack. "I like to talk about fuck-you money," he said, quoting famed Chicago journalist Mike Royko. "Enough money so that if you needed to, you could tell your boss, 'Fuck you,' and you wouldn't be eating Alpo afterwards."
Unless, of course, you owned the stock.
SALON | April 15, 1998
Heather Chaplin is a freelance writer living in San Francisco.

A L S O T O D A Y [ M E D I A ] Greener pastures By Jenn Shreve Out of the growing glut of finance mags, one zine is poised to capture the expanding market of young investors. T A B L E+T A L K The tobacco companies decide to fight back. Is there any hope for a mutually agreeable tobacco settlement? Clear the smoke in Table Talk's Politics area D A I L Y+Q U O T E Take this, Uncle Sam! R E C E N T L Y White House jumps into Starr "conflict" fray By Jonathan Broder and Murray Waas Clinton's lawyer asks Starr to recuse himself from Hale investigation (04/14/98) Case closing By Bruce Shapiro The Justice Department's "request" that Kenneth Starr investigate his own chief Whitewater witness is one of the last nails in the independent counsel's coffin (04/13/98) The other Republican smear By James C. Hormel Jr. The son of meatpacking heir James Hormel describes the homophobic campaign waged against his father's nomination as U.S. ambassador to Luxembourg (04/10/98) Arkansas trooper considered demanding money from President Clinton By Murray Waas Source for Los Angeles Times' "Troopergate" story discussed trading silence about Clinton's private life for hundreds of thousands of dollars (04/09/98) See some evil, hear some evil ... By Gene Lyons Kenneth Starr says his only concern is the truth. Then why is he giving free passes to people who have lied and broken the law? (04/08/98) - - - - - - - - - - - - - - - - Browse the Newsreal Archives - - - - - - - - - - - - - - - -
		BABY BULLS \| PAGE 2 OF 2 - - - - - - - - - - - - - - - - - - - - - - Green's Kurson traces his generation's romance with the market in part to its lack of confidence in the Social Security system. While Kurson himself thinks the concerns are exaggerated, his theory is supported by an American Stock Exchange survey showing 88 percent of 25-to-34-year-olds questioned don't think Social Security checks will be a source of income in their old age. Kurson also points to the popularization in the mid-1980s of 401K plans and heavily tax-advantaged IRAs and to the cessation of adequate company pension plans. Add to the recipe a bull market that won't let you lose and you have the making for a real cultural shift. Ethan Garber became interested in the stock market at 17 -- while working at a Pizza Hut where the TV was permanently tuned to the Financial News Network. After several months, Garber found himself not only absorbing the information but also becoming entranced by it. Soon thereafter, a relative gave him a subscription to the Wall Street Journal, and it wasn't long before Garber had made his first stock purchase -- shares in the Financial News Network -- and was managing a small trust fund left to him and a dozen family members. Fifteen percent annual returns and a stint at Wesleyan University followed, where Garber spent more time on pay phones talking to brokers than in classrooms. According to Garber, his obsession didn't go over too well with college peers. He described Wesleyan as "not a school that celebrated capitalistic pursuits." Recently, however, old college friends have begun popping up, seeking his financial advice and showing real interest in the market. "There's been a dramatic shift both in the level of topical knowledge people have and in their compulsion to be involved," said Garber, who's now a research analyst at an investment bank. Part of what Garber is experiencing is undoubtedly the aging of his peers, young 20-year-olds moving into their late 20s and early 30s who are beginning to worry about financial security. But where young people of the previous generation were known for their disdain of worldly matters, this generation seems not only willing to pursue material wealth but thrilled by the chase. It's a fact that's been noted by executives at the online brokerage E-Trade, who refer to Gen Xers as "young fogies" because they're so consumed with financial matters. "It's almost like a sport," said O'Neal, the engineer in Atlanta. "I love the balance sheets, the statistics -- I have at least 200 annual reports in my house, I download financial information all the time. It's a game for me, but it's a game with the potential to set me free financially." Gapasin, the engineer from San Jose, said the buzz of stock market talk and the excitement of stock market riches hovers over social interaction. Of course, that's Silicon Valley, where IPOs are as common as daylight. But even people in other industries, far away from semiconductors and Wall Street, report a similar buzz. "I think the kind of people who would have had disdain for American business 20 years ago now are involved in it," said Daniel Greenberg, a 27 year-old literary agent in New York who specializes in business books and who himself began investing in late 1996. Like Kurson, Greenberg's background is not one that encouraged an interest in the stock market. His parents didn't invest primarily for financial reasons but also because it wasn't part of the family culture, which leaned more toward socialism then stocks. But Greenberg found a latent interest in the subject when he began working with authors of business books. Last year, Greenberg put $5,000 into an IRA and a smattering of stocks, and he's seen a return of about 20 percent, modest by today's standards but nothing to scoff at. Like many 20-something investors, Greenberg is self-taught, and he displays a sophisticated knowledge of the stock market and a zealous dedication to the Wall Street Journal and the New York Times business section. "I know I'm riding the momentum," Greenberg said, acknowledging both his success as an investor and his passion for the market. "I'm not naive to the fact that this crazy prosperity is what's driving the fascination with money and American industry." But is it possible the excitement of this wild time has created an atmosphere too partylike and that this new breed of investors doesn't fully understand the attendant risks? What happens when the music stops? "I know people who think the Constitution guarantees them a 20 percent return," said Green's Kurson. "It's dangerous because people are going to be in for a grave shock." While many young investors, like Greenberg, insist they're in it for the long haul, some observers aren't so sure. Kurson thinks Generation Xers may change their tune when a prolonged downturn occurs. "We're on autopilot now," he said, "but if there's a long, say, two-year drop in the market, people will say, 'This is for the birds.'" While most young investors don't anticipate becoming fed up with the market, they're already growing sick of working. Money for other generations has meant security, but for this generation it seems to represent a particular brand of freedom. Gen Xers are planning for their retirements like everybody else; it's just that they're aiming to be 35 at the time rather than 65. Gapasin, the San Jose engineer, is hopeful he'll be able to retire in his mid-30s. He's not sure what he wants to do, but he's thinking about becoming a teacher in a small town. Or traveling. Or driving a Porsche. "It's not the money itself," Gapasin said, "that's just the means to an end. I don't want to wait until I'm old to do things like travel. I want to go while I can still rough it. I want to go while I'm still young." Kurson takes a blunter tack. "I like to talk about fuck-you money," he said, quoting famed Chicago journalist Mike Royko. "Enough money so that if you needed to, you could tell your boss, 'Fuck you,' and you wouldn't be eating Alpo afterwards." Unless, of course, you owned the stock. SALON \| April 15, 1998 Heather Chaplin is a freelance writer living in San Francisco.