"Everyone on the aircraft carrier deck is recommending stocks!" The US military is "obsessed" with stock trading and cryptocurrency.

"Space Force Captain Gordon McCulloh's flight squad group chat was unusually active during a nighttime mission, as Google's stock price surged in after-hours trading. A ground crew member sent a screenshot of the news, to which another replied, 'To the moon.'"

Recently, Wall Street Journal reporter Konrad Putzier described in an article that a wave of investment fever is rising within the US military. From tech stocks to cryptocurrencies, military camps are becoming unique "investment clubs."

This trend is tangibly changing the wealth status of service members. The report notes that Porsches and Hummers are increasingly seen in military base parking lots, and uniformed social media influencers are teaching fans the secrets of getting rich. However, it also comes with significant market risks; some soldiers adopt high leverage and concentrated positions, raising concerns about their finances during market downturns.

The article points out that although many service members are long-term investors focused on index funds, a considerable number have become obsessed with short-term trading or concentrate their funds in a handful of stocks or tokens. They are often very young, know little about market conditions outside of sustained growth, and lack risk hedging.

Major Buyers in Crypto

Analyzing IRS data, the article reveals that the US military played a key role in the cryptocurrency market cycle between 2020 and 2021.

Data show that in 2021, among the 25 US zip codes with the highest proportion of individual income tax filings declaring receipt or disposal of cryptocurrency, 11 were around military bases.

For example, near Luke Air Force Base in Arizona, the rate reached 19.4%; at Vandenberg Space Force Base in California it was 18.1%, while the national average at the time was only 4.1%.

As the crypto market plunged in 2022, this "dominance" around military bases weakened somewhat.

High Risk and High Return

The article uses several cases to illustrate the high risk of military investing. The story of Coast Guard Petty Officer Bryson Saunders is typical. Enticed by comrades boasting about Dogecoin profits, he entered the market, investing in Bitcoin and meme stocks like GameStop, bluntly saying, "I was trying to punch my ticket."

Saunders used his extra income to buy a Hummer and became a finance influencer. But it hasn't all been smooth sailing. The article recounts how he lost over $10,000 in a single day last winter trading a leveraged product tied to MicroStrategy stock.

Navy Major Zach Rodriguez, influenced by shipmates while cruising the Pacific on an aircraft carrier, invested half his family savings (over $100,000) in cryptocurrencies like Chainlink. He’s seen his assets skyrocket, but also suffered a painful loss of $250,000 in a crypto scam. Now, he calls himself a "bitcoin and chill" investor, holding about $1 million in Bitcoin and related assets.

The Military Camp: A Unique Investment Club

The article observes that military bases are fertile ground for investment mania. Large numbers of young people gather here; they are natural risk takers with disposable income and plenty of free time. Also, because military salaries are publicly based on rank, talking about personal finances carries little taboo.

Journalist Konrad Putzier traces that service members have always been active investors, but two trends in the past twenty years "greatly boosted this wealth culture": the rise of trading apps like Robinhood, and the War on Terror. From the early 2000s, hundreds of thousands of US troops deployed to remote bases in Iraq and Afghanistan received hazard and family separation allowances, and their income was exempt from federal income tax. This gave them thousands of dollars in unexpected extra income.

F-16 fighter pilot Shawn Walsh opened his first brokerage account while stationed in Iraq in 2008. Between missions, he and his comrades discussed investment strategies in a small hut beside the hangar. By the time he retired from the Air Force in 2024, he was a millionaire. Air Force transport pilot Spencer Reese also said, during missions, "every mission is like a crash course in investment strategy."

New Wealth and New Worries

The wealth from successful investing is now visible everywhere in military bases. Army Warrant Officer Eric Rawlings, a helicopter pilot at a Colorado base, recently bought a $10,000 Rolex to celebrate his investment gains surpassing his military salary for the first time. "There are some really nice cars driving around the base," he said.

Yet this prosperity brings concern. Journalist Konrad Putzier cites retired Air Force veteran and financial advisor Brian O’Neill, who says that if the market experiences a major pullback, "they’re going to feel some pain." Retired Army officer David Ashcraft voiced similar fears, worrying, "We might be on the verge of a bubble bursting." Ashcraft himself suffered heavy losses in the late-90s tech bubble and has since stuck to index fund investing.

Many service members argue that stable jobs and guaranteed pensions after 20 years of service give them the ability to take higher risks. But the risks remain. Former Marine Corps truck driver Moises Gonzalez lost $20,000 day trading gold and stocks in 2023; though he recouped $30,000 in 2024, after leaving the military and trading full-time, he found consistent profits extremely difficult. "I might make $7,000 in three or four days," he admits, "then lose it all on the fifth day."

Risk warning and disclaimerThe market involves risks, and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account individual users’ specific investment goals, financial status, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their specific circumstances. Investment based on this is at your own risk.