Market volatility not a worry for Millennial investors

By Grace Ormsby

September 09 2020
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In spite of COVID-19-related volatility, Australian investors aged between 24 and 39 remain bullish about the current sharemarket.

Market volatility not a worry for Millennial investors

According to a global study from Calastone, there’s a clear correlation that has emerged that links risk appetite during the pandemic with the age of the investor.

Having surveyed investors across Australia, New Zealand, Hong Kong, the United Kingdom, the United States and Germany, Calastone showed that Millennials, in particular, are undeterred by the current volatility.

Across all markets, Millennials were revealed to be the most active demographic when it came to investing – almost 72 per cent have invested or have considered investing since the pandemic became a global issue back in March.

In fact, Australian Millennials come in only second to their United States counterparts with regard to their bullish attitude – with 81 per cent of Millennials surveyed for the study indicating that they have either invested or considered investing at this time.

Across in the states, that Millennial figure is up at 90 per cent.

Calastone attributed the strong rate of investment by Australian Millennials in part to the low interest rate environment and subdued economic growth conditions.

It’s a different story across age groups: Australia’s Millennials are twice as active as their Gen X counterparts.

Just 28 per cent of Gen X have made an investment as a consequence of COVID-19, while 58 per cent of Millennials reported they had done so.

Understandably, and without the benefit of lengthy time horizons, older Australian Baby Boomers aged 66 to 70 have shown the most fear of the current market, with 100 per cent refraining from making any new investments at this time.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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