The stock market is one of the most popular places for millennials to invest. Although they are less likely than Generation X to invest in stocks, they are becoming more interested in socially responsible investing. In 2017, they contributed $51.1 billion to sustainable funds. Despite these trends, only 24% of millennials have more than $100,000 saved. However, many of them still feel that they are not knowledgeable enough about investing.
Fintech investment apps are a popular source of retail investing. However, the current macroeconomic climate may make it harder for consumers to invest. As a result, fintech investing brands will need to focus on retaining and growing existing customers and lowering expectations for new customers. It’s also important to note that fintech usage will continue to decline among target segments, as older and higher-income consumers will not replace younger investors.
As inflation continues to increase, many investors have started to diversify their portfolios. As a result, they’re turning to inflation-hedged assets, like gold. Gold is historically a safe-haven asset and tends to increase in value. It also acts as a portfolio diversifier due to its low correlation to the stock market.
Many high-tech companies are now going public through direct listings. Many successful tech companies are doing this, including Spotify. Another recent trend is the use of robo-advisors. The number of searches for the term “robo-advisor” has increased by more than four thousand percent over the past decade. Most robo-advisors target younger investors and lower-balance accounts.