"The meme stock craze of 2020 caused a "generational shift in how people think about building wealth," Kevin Gordon, macro strategist at Charles Schwab, tells Axios. That means stocks, but Gen Z hasn't experienced a "protracted and more painful bear market" like older investors have, he says. "It's not the norm to see a 20% drop and then a record climb back to all-time highs," he notes, referring to what happened in April."
"By the numbers: Retail trading activity has doubled since 2010, making up about a quarter of daily trading volume. About a third of 25-year-olds have investment accounts today, a sixfold increase from a decade ago. Financial assets and investments are "taking a bigger share" of the wealth picture for young people, George Eckerd, research director at JPMorgan Chase Institute, tells Axios."
"Homeownership accounts for nearly half of Americans' wealth, and a home is the average American's most valuable asset. In 2022, the median net worth of U.S. households rose to $176,500, up from $136,500 in 2019. That increase was driven largely by rising home equity, according to the U.S. Census Bureau. While both stocks and housing can be affected by macro factors, home prices are typically not highly correlated with the stock market."
Meme stock activity in 2020 triggered a generational shift toward stocks as a primary wealth-building tool. Many younger investors have not experienced prolonged bear markets, and recent rapid rebounds reinforced the belief that buying dips carries limited risk. Retail trading volume has roughly doubled since 2010 and now represents about a quarter of daily volume. Roughly one-third of 25-year-olds hold investment accounts, a sixfold increase from a decade earlier. Homeownership remains the largest asset for most Americans and drove recent median net worth growth through rising home equity. Rising barriers to homeownership and easier, cheaper trading may widen the wealth gap.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]