Most millennial investors think they will be financially stronger after the pandemic
More than 60 per cent of millennial investors believe they’ll be financially stronger after the pandemic then before it.
While coronavirus had a devastating impact on many parts of the economy, those aged 18-34 saw it as an opportunity to enter different markets.
The majority of millennials looked to adapt to the ‘new normal’, according to new research from trading broker HYCM, while just 30 per cent of those aged over-55, and 43 per cent overall; felt the changing investment landscape was a good thing.
Young people had a more positive outlook for 2022, with over 60 per cent saying the pandemic was an opportunity to back emerging assets and markets. This dropped to just 12 per cent of older investors sharing enthusiasm for it.
However, a leading analyst warned their success is “unlikely to be sustained” and “stands to be dashed by slowing growth”, amid rising inflation and pressures on the cost of living.
Climate change
The figures indicate that 57 per cent of millennials view climate change issues as a key factor in their investment decisions, compared to around 15 per cent for those in an older bracket, which is mirrored with the prioritising of environmental, social and governance (ESG) investments this year.
“It’s a pleasant surprise to see that the pandemic is breeding a new generation of investors keen to do more with their money”, said chief currency analyst at HYCM , Giles Coghlan.
Millennials are “making the best of new opportunities born out of the pandemic” and “actually seem more attuned to the changing markets and are more confident about what to do with their cash” than more experienced counterparts.
He warned however, they have “grown accustomed to stunning stock market returns that are unlikely to be sustained and their optimism stands to be dashed by slowing growth. “
On the disparity in support for environmental investments, he said the issue is “not going away any time soon” and that young people “are evidently particularly focused on this investment sector.”