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Laxman Pai, Opalesque Asia: The US's youngest investors took on more risk and traded with more volatile products as the coronavirus slammed the economy, said a study.
According to survey data from E-Trade, more than half of Gen Z and millennial investors said their risk tolerance has grown since the outbreak began, according to the brokerage. This is 23 percentage points higher than the total population.
Over one in three investors (34%) under the age of 34 said they are moving out of cash and into new positions, 15 percentage points higher than the total population, it said.
More than half of investors (51%) under the age of 34 said they are trading equities and 46% said they're trading derivatives more frequently since the pandemic, compared to 30% and 22% of the total population, respectively.
While only 9% of young investors said their investment portfolios have recovered since the beginning of the pandemic, 50% think it will happen in the next six months, compared to 33% of the total population.
Personal health (58%) and investment portfolio (53%) concerns remain the top worries for young investors in the wake of the pandemic.
"When it comes to Millennials and Gen Z investors, time is on their side, but that doesn't mean they can be complacent or act emotionally," said Chris Larkin, Managing Director of Trading and Investment Product at E-Trade Financial.
"Access to the market has never been easier, so investors just embarking on trading shou...................... To view our full article Click here
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