The future of the stock market remains unclear due to the COVID-19 pandemic. One age demographic appears to take advantage of this confusion, and they are millennials. Below is a peek at the possibility of millennials as traders leading the stock market for 2020.
In the months following the declaration of the COVID-19 pandemic, famous investing apps have seen interest in trading rise to an unparalleled level.
Trading App Interest
For example, the Robin Hood trading app has seen its everyday business grow by 300 percent. Another trading device, Raging Bull Trading, has seen demand for their services grow by 158 percent since the lockdown began.
Mobile-first traders such as Libertex and Trading 212 have also seen demand spikes.
The Wealthsimple Trade online platform registered a 54% growth in users in March 2020. Surprisingly more than half of these new users were 34 years of age or younger.
The founder of Raging Bull Trading, Jeff Bishop, said that a lot of people are at home and have more time on their hands. Many have lost their jobs so they are searching for new opportunities, thus younger investors are searching for ways to recover their capital.
Using Time To Speculate
As more than 9 million people are supposed to be furloughed in the UK alone, it appears people are spending time and money they would usually invest at work on the stock exchange.
When people are compelled to take time off work or have been thrown out of jobs entirely, they may be turning to the stock market to make extra profits as well.
What patterns do we hope to see from millennials in the stock market?
Thanks to easy applications and online investing sites, it is easier than ever for millennials to ‘stock pick’ and buy stocks of specific businesses.
Millennials may consider which stocks have collapsed as a result of the COVID-19 pandemic, or consider purchasing stocks from companies they use in their daily lives.
Whereas experienced investment advisors suggest a wide variety of investment portfolios, first-time investors can feel more comfortable investing in sectors that they are familiar with or use personally.
The Chief Investment Officer for Wealthsimple said we are seeing drastic shifts in the prices of some of the most common stocks, and investors are seeking to capitalize on that. Will the rise in millennial investors further impact the financial market? We will ensure that you are kept up to date with all the latest news and developments.