According to Pew Research Centre, Millennials are people who are born between 1981 and 1996, and they’re the first generation to come of age in the new millennium. Millennials, in simplest form, are diverse, confident, multicultural, socially conscious and ambitious but the one characteristic that is very common in this demographic cohort is their aggressiveness in every situation.
This aggressive behavior engulfed them to apply FOMO (Fear Of Missing Out) on the latest trends and this harbor a range of complexities in their personalities. They are very eager to achieve what they want and see the straight line towards their goal which produces better outcomes. On the other note, being aggressive seems scary as they tend to take more risks and this may not include the right planning and decision-making sometimes.
ADVANTAGES OF BEING A MILLENNIAL IN THE STOCK MARKET
TIME
When it comes to investing, being a millennial is an advantage as time, and their youthfulness, is on their side. They may experience highs and lows of the stock market, but the potential to grow their investment is enormous as they will have so much time to invest. Potential growth in equities works wonders when you are young and have started early in the market.
LIFE VIEW
Many millennials envision themselves to be working in a lifelong career – not because they are tied up to commit to saving up for retirement but because of their dedicated passion in what they do. Their career trajectories are in a long-term as they want to pursue ambitions far different from what it used to be where people’s goal was to experience working in a big company and then, later on, retire and enjoy lives. These millennials are now looking for a work/life balance status quo while pursuing their dreams and this kind of thinking will play a big part in the future of investing as they tend to be more proactive in decision making and implementation.
FINTECH
Lucky enough for them to experience trading in this era where enormous resources like FinTech tools are already available online as they could use it as an advantage to improve their ability and knowledge to trade in equities while they are young. These FinTech adoption can help millennials identify their profile investing risk and strategies to play well in the market and meet their financial goals.
“If you are 50 or younger or have 10 years before taking money out, and do not have 100% in equities, you are crazy.” ~ John Buckingham, editor of the Prudent Speculator
As a new breed of investors, millennials are changing the world of stock market as they have an incredible uptake on sharing and experience economy with an emphasis on mechanisms of equity, sustainability and capitalism. They are not only concerned of their own financial situation but of quality of life that surrounds them that are aligned with their values and how they see these opportunities ignite by radical solutions and market evolutions.
Although the 2008 global crisis brought the fate of the first gen of millennials in a shaky condition where job markets are dim, high prices of commodities risen too fast and their parents’ retirement funds were shrunken down, they were smart enough to treat this as an opportunity for them to be more aware of the volatility of the global market and its uncertainties and apply these learning experience towards the next bull runs of their lives.