In the past decade, investing trends have varied significantly, but the latest data suggest that changes have been minimal. However, the tight labor market and changing investor makeup could bring meaningful changes. In addition, more consumers may have access to investment products through their employers. This could have a positive or negative impact on stock prices. Investing trends can be used to guide your portfolio.
While Baby Boomers, Gen Xers, and millennials account for a similar percentage of investors, younger people have shown a trend toward less aggressive investments. Investments in personal brokerage accounts, IRAs, and managed accounts are declining among millennials, while those in Gen X are increasing. The decline in the millennial investment trend is partly due to the economic uncertainty that millennials have faced. As a result, many of them feel behind in their retirement savings. Meanwhile, millennials will inherit $40 trillion from their parents, and this trend can be seen in investing trends.
As a result, investors are looking for other opportunities. Some seasoned investors take a long-term view, while others use short-term volatility to buy into popular themes. While identifying trends is not an easy task, tuning out the noise and identifying future trends can yield significant gains.
