Are less millennials investing? (bond, fund, trading, credit)
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I'm currently 31 years of age. I enjoy following the markets, not simply because I have an invested interest in the volatility of certain companies, but I enjoy being ahead of the curve and knowing whats actually going on in the world in terms of innovation, technology, and other facets that contribute to the global marketplace.
However, let's just say that having an intelligent conversation in regards to how good or poor certain hip stocks like Amazon, Google, Tesla, etc. are performing is like trying to find a needle in a haystack. Maybe 1 in every 10 of my peers has a clue about the innovation and performance of many of these well liked S&P companies that they use practically every day.
All this leads me to my final thought. It appears as if millennials and other young folks in their 20's and early 30's have changed their buying mentality from an "invest and save for the future" to a "I want it now because everyone else has it" mentality. This of course, combined with a stagnant job economy, the increased dependency of inherited wealth, as well as other recent social factors seems to have made investing almost a thing of the past for many millennials. Your thoughts...
My impression was that millennials are very thrifty...if they have jobs! But investing long term has very little to do with knowing what a "hip" stock is trading at daily and more about what index funds are doing well with the cheapest ERs.
I have a millennial daughter and know lots of her friends. Most appear to be very thrifty and are saving for the future. There is much less consumerism and buying on credit. Most have had some difficulty starting careers and are very cautious about money.
Speculating on stocks and playing the markets are pretty much the opposite of long term savings. In fact that sort of "investing" is more like gambling. Innovation and individual company performance often has little to do with the performance of the stocks. I also suspect many millennials are very suspicious about Wall St, stock manipulation, insider trading, etc, etc.
If I had to guess I'd say that not much more than 1 in 10 of any age demographic follow stocks and enjoy talking about them. This doesn't mean that they don't invest though (said as a millennial who is largely in broad index funds but doesn't follow the movements of individual stocks all that closely).
My millenium kids were too afraid of loosing money so I played safe and put their retirement savings 100% in stocks, despite their protest but what the heck, they have time.
My millenium kids were too afraid of loosing money so I played safe and put their retirement savings 100% in stocks, despite their protest but what the heck, they have time.
Jim Cramer's general bond / stock allocation ratio recommendation: Younger than 30 - No reason to own bonds
Speculating on stocks and playing the markets are pretty much the opposite of long term savings. In fact that sort of "investing" is more like gambling.
True, speculating is the opposite of saving.
Quote:
Originally Posted by jrkliny
Innovation and individual company performance often has little to do with the performance of the stocks.
Over the long term, it has a lot to do with the performance.
I'm getting the impression that you feel like buying a good stock or fund and managing it over time is equivalent to just speculating and taking a flier on something.
Traditional "saving" is just a guaranteed way to lose money these days.
I am 34 and I invest. I watch the market daily and make moves both for the short term and for the long term depending on the situation. I find the same thing the OP does in that many of my peers simply dont care. Some people play horseshoes, some do crosswords, some invest. There is a butt for every seat.
Millennials have recency bias. All they know is the "lost decade" of the 2000's.
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