Even though young retail investors have made headlines for making an investment in the money markets amid the COVID-19 pandemic, they still own only a small percentage of the shares.
Millennials, ranging in age from 25 to 40, own about 2. 5 of the shares, which equates to about $1 trillion, according to the Federal Reserve’s knowledge for the time of this year’s quarter.
While “trillion” seems like a lot, put it in perspective: baby boomers own 55% of the stock, representing assets of $22 trillion; and Generation X owns 26%, or $10. 5 trillion.
“Older generations, the ones who have had the most time to accumulate wealth and let their investments rest and grow, are kind of big fish, even though the retail revolution is real,” Corporal said.
Still, young retail investors have made their mark on money markets this year, and have made record gains in once-reasonable stocks like GameStop and AMC, creating a new asset elegance called meme stocks.
A revolution in retailers’ access to markets through trading apps would possibly be causing the meme stock mania and its daily volatility, but knowledge shows that most Millennials are likely making a long-term investment, Corporal said.
“If you look at the overall trend that’s increasing, even before the pandemic, in terms of millennial investors and their shareholding, it’s increasing,” Caporal said, noting that in early 2019, the cohort owned about 1. 8% of the shares. . . “And what that tells me is that, in general, Millennials buy and keep, and they’re not just looking at the industry throughout the day. “
Still, as millennials enter their forties of income, their share share will likely continue to grow, he added.