Why Younger Investors Are So Optimistic
Why Younger Investors Are So Optimistic - US News and World Report
Cynics might chalk it up to the optimism of youth: A new study from Scottrade has found that investors under age 45 are more optimistic about their investments than older investors are, and they’re also more engaged and informed about their holdings. They check their accounts more often and are more likely to say they will add money to their investment accounts over the next year.
Among Gen Y, the cohort primarily in their 20s, 85 percent said they expected their portfolio to finish the year up. Meanwhile, 3 in 4 Gen Xers, who are in their 30s and early 40s, said the same. Around one-third of investors under age 45 said now is the “best time to invest and get in on some great deals;” just 13 percent of baby boomers and 8 percent of seniors said the same.
“Since 2009, we’ve seen their expectations for their portfolio increasing … They’re feeling confident and empowered,” says Kristin Grupas, assistant director of client education at Scottrade, of investors under age 45.
Gen Y’s optimism extends beyond the investing world, too: A survey released in September by the Gen Y consultancy Millennial Branding and career site Beyond.com found that almost 9 in 10 Gen Yers are optimistic about finding a job, compared to 8 in 10 Gen Xers and just over 7 in 10 baby boomers. “They have their whole lives ahead of them … they are saving more, managing their money, and are savvy investors because they have access to a whole online network of experts,” says Dan Schawbel, managing partner of Millennial Branding.