"During a night mission, Space Force Captain Gordon McCulloh noticed his squadron's group chat buzzing with excitement as Google's stock surged in after-hours trading. A ground crew member shared a screenshot of the news, while another replied, 'To the moon.'"
Recently, journalist Konrad Putzier described in an article how a wave of investment fever has swept through the US military, turning barracks into a unique "investment club" focused on everything from tech stocks to cryptocurrencies.
This trend is visibly altering servicemembers' financial situations. The report notes an increasing number of Porsches and Humvees in military base parking lots, while uniformed social media influencers teach followers how to get rich. However, this phenomenon also carries significant market risks, with concerns raised about high-leverage and concentrated portfolio strategies that could backfire during market downturns.
While many servicemembers are long-term investors favoring index funds, a substantial number are drawn to short-term trading or heavily concentrated bets on a few stocks or tokens. Often young and inexperienced with market downturns, they lack risk-hedging strategies.
**Key Players in Crypto Markets** IRS data analysis reveals the US military played a notable role in the 2020-2021 crypto boom. Among the top 25 US zip codes with the highest percentage of tax filers reporting crypto transactions in 2021, 11 were near military bases. For instance, Luke Air Force Base in Arizona had a 19.4% reporting rate, while Vandenberg Space Force Base in California recorded 18.1%, compared to the national average of 4.1%. This dominance waned after the 2022 crypto crash.
**High Risk, High Reward** The article highlights several high-stakes investment cases. Coast Guard Petty Officer Bryson Saunders, inspired by peers boasting about Dogecoin profits, plunged into Bitcoin and meme stocks like GameStop, admitting, "I was trying to punch my ticket [to quick wealth]." Saunders used gains to buy a Hummer and became a finance influencer, but suffered a $10,000 loss in one day trading a leveraged MicroStrategy-linked product.
Navy Commander Zach Rodriguez invested half his family’s savings ($100,000+) in cryptocurrencies like Chainlink while deployed on an aircraft carrier. After riding highs and losing $250,000 in a crypto scam, he now identifies as a "bitcoin and chill" investor, holding ~$1M in Bitcoin and related assets.
**Barracks: The Unusual Investment Club** Military bases prove fertile ground for speculation, attracting young risk-takers with disposable income and downtime. Open discussions about finances are common, as pay scales are public.
Putzier traces two decades of trends fueling this "get-rich culture": the rise of apps like Robinhood and post-9/11 wars. Deployments to Iraq and Afghanistan brought tax-free combat pay and separation allowances, suddenly giving troops thousands in extra income.
F-16 pilot Shawn Walsh opened his first brokerage account while stationed in Iraq in 2008, discussing strategies between missions. By retiring in 2024, he was a millionaire. Cargo pilot Spencer Reese called each mission a "crash course in some investment strategy."
**New Wealth, New Worries** Investment success is evident on bases. Army Chief Warrant Officer Eric Rawlings, a Colorado-based helicopter pilot, celebrated outperforming his salary by buying a $10,000 Rolex, noting, "There are some really nice cars driving around."
Yet concerns linger. Financial advisor and Air Force veteran Brian O’Neill warns of potential "pain" during market corrections. Retired Army officer David Ashcraft, who lost heavily in the 1990s tech bubble, fears "the edge of a bursting bubble" and now sticks to index funds.
Many argue stable jobs and military pensions justify higher risks. But ex-Marine trucker Moises Gonzalez, who lost $20,000 day-trading in 2023 before recouping $30,000 in 2024, admits post-service trading is volatile: "I might make $7,000 in 3-4 days, then lose it all by day five."