Big Tech has driven the bull market, and millennials have been a big part in making it happen. Even heading into a new decade, the connection between millennials, an aging population, and smarter technology has portfolio mangers
expecting good returns on stocks in the new decade.
Yet millennials have also been the generation that has missed out on the market, and continue to
hold back from investing. According to
recent research, 77% of millennials “wished they’d started investing earlier.”
As a millennial, I can understand the initial hesitation. The 2008 global recession still feels fresh in our minds (especially as Canadians weren’t affected until a few years later), and soaring living expenses have outpaced capital gains. The
LA Times reported that only 49% of millennials held stock directly or indirectly over the last two years, lower than the 61% average for the same age range before the global recession.
But as the conversation has shifted from “not investing” to “wishing they were investing,” the market is also figuring out what kind of investments millennials
are interested in, and more importantly, what we should be investing in. If you’re worried about a looming recession, keep in mind that experts have lowered their expectation for a downturn to a 35% chance in the US before the 2020 presidential election. It’s significantly lower than previous estimates, which expected a certain recession within eighteen months, but still high enough to drive investors to diversify safely.
If you were to ask bankers and advisors, you’d probably be pointed to mutual funds and ETFs (which Stockhouse has
previously detailed). If you head to financial blogs or YouTube, you might receive advice for
newer apps like
Wealthsimple that help new investors out.
Across the board, however, is a combination of investments. On one hand, you’ll have your share of passive income from savings or bonds, but on the other is
some ownership of stocks, either directly or indirectly.
The simple fact of the matter is that the capital markets are projected to continue their bull run, and if you’re going to be somewhat invested in stocks, you should at least have your pick. If you believe in the certainty of Big Tech, picking the company or ETF for you might be key. Companies like
Alphabet Inc. (
NASDAQ:GOOG) and
Amazon.com Inc. (
NASDAQ:AMZN) are certainly shaping up to remain relevant well into the 2020’s.
If you’re looking for bigger risk/reward, look at the sectors that are poised for the biggest potential gains, including
cannabis,
healthcare, and
resources.
And unlike generations previous, embrace the future market by
investing for it. A recent study found that the vast majority of millennials that
have invested put money into investments with social or environmental benefits. Well-known newsmakers include
Beyond Meat Inc. (
NASDAQ:BYND) and
Tesla Inc. (
NASDAQ:TSLA), and more innovators are trying to break into the market.
Green products and energy aren’t just trends, they’re the future, and millennials have a front row seat into figuring out which initiatives will succeed.
New to investing in stocks? Check out Stockhouse tips on the Best Stocks to Invest in.
For the latest info on hot investment sectors, check out the Trending News hub on Stockhouse.