I would argue that the main reason isn't FOMO. It's increased awareness, resources to educate yourself, and resources to participate. All of these come from the Internet.
this post was submitted on 27 Aug 2023
17 points (90.5% liked)
Personal Finance
3824 readers
1 users here now
Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)
founded 1 year ago
MODERATORS
No cost trading also helps a lot too.
And trading partial shares. Don't need to have $150 to get a whole share of GOOG or AAPL; instead of putting $20 in a 0.5% savings account, it can go into an actual investment.
Awareness definitely shouldn't produce more active traders, since casual daytrading is almost always suboptimal compared to other casual investing strategies, even before you take time overhead into consideration. I'm sure this has more to do with platform access and the ability to skirt day trading rules by having nearly infinite free accounts.
Also availability. Nowadays you can buy stocks for free on your phone... 20 years ago you had to physically go to your bank, pay extremely high fees, and probably get scammed into buying some expensive fund because you didn't have the possibility to easily research stuff on your own...
The internet has been a thing for a long time. This is hardly an exclusive thing only for zoomers. Hell, internet stock trading had been a thing since before zoomers even existed.... it's been around for almost 30 years and the oldest zoomers are 24 or 25.
Yes but phone apps that make it easy to open a trading account are relatively new.
Hell, internet stock trading had been a thing since before zoomers even existed… it’s been around for almost 30 years
That's true, although calling in your order instead wasn't much trouble. However opening a brokerage account was much more difficult. You had to call the brokerage to have them mail the forms to you, fill out the several page form, and then take the forms to the local brokerage office, if you were lucky enough to have a local brokerage office. Sometimes you also had to have the forms notorized.
I’m a bit confused who the survey sample is. 90% of gen Zers chosen according to what method?
You would expect Fortune to give a source, but I guess they don't
It's 90% on gen z with investments, the article has a link to the survey they're getting the data from (or at least another article with more specific numbers about the survey)
Thanks!
https://fortune.com/2023/08/26/gen-z-stock-market-fomo-active-investing-trading/
Orig posted link did not work for me.
Lack of participation in the stock market is one of the biggest reasons why the bottom 80% have slowly lost their wealth in the last 50 years. In this inflationary scam system, you have to secure your wealth somehow. Stocks are a great way to do that. The government is pumping a large part of the money it stole through inflation into the stock market. That's one of the biggest reasons why the rich are getting richer and the poor are getting poorer.
Ideally you would have a money system where the average person doesn't have to worry about that stuff. But alas, here we are.
The price of Campbell's Tomato Soup used to be steady at 0.1$ for 70 years, but its price increased by 10x in the last 52 years since we changed to this reverse Robinhood money system.