Wed, 19 August 2020 | stocks millennials Gen Z
A new study by E*TRADE Financial Corporation found that risk tolerance among Millennial and Gen Z investors has spiked since the pandemic began. Over half (51%) of Gen Z and Millennial investors say their risk tolerance has increased since the coronavirus outbreak, 23 percentage points higher than the total population.
These younger investors are also moving out of cash and into new investment positions, with about one-third of investors under the age of 34 taking these actions compared to just 19% of the total population.
And they are trading more frequently. Over 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.
Despite higher trading levels, Millennials and Gen Z investors are still waiting for their portfolios to recover, with on 9% of younger investors stating their investment portfolios have recovered since the pandemic. However, optimism remains high, with 50% thinking it will happen in the next six months, compared to 33% of the total population.