Over the last couple of years, the COVID-19 pandemic, combined with the rise of investment apps, has resulted in an increase in the number of younger investors. But where are these younger consumers actually investing their money?
A recent report from DailyFX reveals the stocks in which Millennials and Generation Z – those aged around 18 to their mid-30s – are most likely to be putting their money. The top 50 are as follows:
So, what can we learn from these results?
Younger investors appear to favour global stocks
Each of the top five most popular stocks amongst UK Gen Z and Millennial investors – NIO, Airbnb, Palantir, Zoom and Plug Power – are US, rather than UK-based. For this group, it seems like the brand itself, rather than its geographical location, is the most important thing.
It seems that this group are not averse to risk
Among the top 50 brands in the DailyFX list are several travel brands: Airbnb, American Airlines, easyJet, Delta Air Lines, Carnival and more. COVID-19 has had a significant impact on the travel sector, but this doesn’t appear to have deterred these investors – who may simply be banking on the fact that they expect prices to rise once again when the pandemic is under greater control.
A look to the future
Many of the brands on the list have something significant in common: their use of technology to propel them forward into the future. Electric car company NIO; Shopify, who are boasting huge profits as ecommerce grows; digital payments company Square; Chinese video-sharing site Bilibili…all of these are businesses that have a huge focus on using technology to propel themselves forward and differentiate themselves from competitors.
It appears that, while younger investors are possibly willing to take more risk than their more seasoned counterparts, some could well be investing with an eye on the future, rather than simply looking for short-term gains. If that truly is the case, investing guru Warren Buffett would be proud.
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