The Wild Stock Market has scared many investors, but more millennials are investing in stocks despite volatility.
According to CNN Money, stock trading app Robinhood, which is popular among millennials, reported that the number of new accounts in their site doubled on August 24 when the stock market fell over 1,000 points at the open. On that Monday, 65% of US customers bought stocks, rather than sell. As the market sell off continued the following day, Robinhood users bought more stocks.
Meanwhile in Europe, Netherlands-based online trading platform Degiro reported that 60 percent of Europe's investors who are under 40 bought stocks in August. This company presently has a total of 70,000 users in Europe, a number more than twice its users in 2014. The company launched Monday its US trading platform Deziro.
According to a report from the International Business Times, there are experts that cautioned millennials that the downturn in the stock market doesn't necessarily mean they should all buy dozens of sharers. It is still important to come up with a long-term plan. Remember, market fluctuation is normal.
San Diego-based finance site The College Investor founder Robert Farrington said, starting an investment portfolio young may give greater benefits, there are still a lot of millennials who are afraid of losing money. Farrington suggests that the recent up-and-down in the market could be a great time for the young investors to test the waters. "Downturns like this are just an opportunity to buy equities at a lower price," said Farrington.
As younger investors dive in, some of the seasoned ones are literally fleeing stocks, and are even exiting bonds. According to Credit Cruise, July and August are the first months since 2008 that retail investors are taking their money out of both stock and bond funds.
This only shows that Millennials diving in to buy more stocks during the market volatility is definitely a counter to how most investors behave.
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