Millennial investors bought cheap stocks in Trump tariffs market turmoil
More than a third of millennial investors bought stocks and shares in the market turmoil that followed US President Donald Trump’s “liberation day” tariffs, a survey reveals.
The age group took advantage of the volatility that swept across the world’s financial markets to buy cheap stocks, according to the research from Charles Stanley Direct.
Some 38 per cent of millennial DIY investors said they bought stocks and shares in the aftermath of Mr Trump announcing a sweeping set of new tariffs on exports to the nation.
This compares with 16 per cent of the baby boomer generation – those aged between 60 and 78.
DIY investors refers to those who actively pick their own investments, also including assets such as cryptocurrency and gold.
Across all age groups, 31 per cent bought stocks in the market dip, the survey of 1,000 investors showed.
Stock markets around the world suffered sharp drops in the days following the so-called “liberation day” announcements on April 2.
The UK’s FTSE 100 saw its worst single day of trading since the start of the Covid pandemic, while European, US and Asian indexes also took a battering.
The US’s S&P 500, which tracks the country’s biggest listed firms, lost about £3.7trn in value over a two-day record run of losses.
However, most indexes, including the FTSE and the S&P, have since recovered the losses as the US has struck new trade deals with countries including the UK and China.
Mr Trump is also facing roadblocks to his trade policies from the US courts.
On Thursday, a federal appeals court said it was allowing Mr Trump to continue collecting import taxes for now, a day after a lower court blocked the duties.
Rob Morgan, chief investment analyst at Charles Stanley Direct, said: “The fallout following the imposition of universal tariffs in early April was widespread, and especially alarming for investors as markets plummeted and carefully curated portfolios were blown off course.
“However, a large cohort of DIY investors were not simply looking to sell up or ride out the wave, but saw the market turmoil as an opportunity to seek discounts and reposition their investments.”
Meanwhile, other, more risk-averse investors flocked to so-called “safe haven” assets during the stock market turbulence.
About a fifth bought alternative assets, such as gold, the survey showed.
The precious metal hit its highest price in April, hitting about £2,600 per ounce, but has eased back slightly since.
Press Association