Either they kill the golf industry or change the way business is done, the millennium changes everything.
And that includes investment.
Over the years, most investors have put their money into the stock market. With the entry of the millennium into the financial sector, it is slowly changing.
According to a survey by Goldman Sachs, only 18% of the millennium see the stock market as the best way to save the future. 40% are not at all interested in the stock market.
In this article, we will look at the top trend of Millennial investment and try to understand the purpose of the market.
The Millennium Has Encountered Market Accidents-Several Times
The Millennium is a generation between the ages of 18 and 35 that grew in the 90s and 00s. The two decades saw some major changes to the economy.
Millennium grows through Dotcom bubbles and housing and explosions of the same bubbles. They have undergone two recessions.
We’ve all seen how the Great Depression has lasting impact on the financial habits of our grandparents. These explosions and explosions have a similar effect on how Millennials make their investments.
After seeing a high-risk short-term investment fail, Millennials are skeptical of the stock market. Although almost triple in the years since the great recession, most young investors see this growth unsustainable.
Millennium Need Less Money to Invest
This is not laziness: The millennium gets a lower wage than their parents. And that is coupled with a much higher student loan debt.
With a debt-to-income ratio higher than the previous generations, Millennials has insufficient revenue.
That includes income that will lead to investment.
The millennium invests less because they do not invest much. And what money they have to invest tends not to enter the stock market, because …
Millennium investments prefer lower-risk options
After living through the chaotic high and low levels, the Millennium feels a healthy skepticism towards risky investments. And that includes the stock market.
With a little money to invest, the millennium is more careful with their choices.
According to a survey conducted by Bankrate.com, thirty-nine percent of the millennium chose cash investments for long-term financial planning. Twenty-three percent prefer real estate.
Both lead the stock market, which goes in at only 19%. This is despite the much higher return on investment.
But Millennial investments are more interested in security than ROI. The stock market may have a higher potential for high profits, but it is accompanied by a healthy risk dose.
And young investors are not interested
The Millennium is a Great Corporate Skeptic
It’s no secret that Millennials does not trust big companies.
As consumers, millennia move their money from big brands and into small or local companies.
The Millennium is less concerned with economic success as their parents. Rather, they are more concerned with environmental sustainability, economic equity, and product quality.
As a result, they are not interested in cruel corporations. The millennium is not impressed by sacrificing quality or cutting wages to increase profits.
And since most local companies do not trade on the Stock Exchange, many millennia are not interested.
One thing is certain. As they become a larger part of the economy, Millennial investment habits will have a permanent effect on the financial sector.