Gen Z's Active Trading: Securing Their Future or Driving Themselves to Ruin?

1 min read
Source: Fortune
Gen Z's Active Trading: Securing Their Future or Driving Themselves to Ruin?
Photo: Fortune
TL;DR Summary

Gen Z is actively participating in the stock market more than any other generation, driven by a fear of missing out (FOMO). They are responding to economic factors like inflation and rising interest rates and using diverse financial resources to learn as they go. Gen Z investors are buying more stocks than any other generation and expect to invest even more this year. While their financial activity is influenced by apps like Robinhood and a cynical outlook towards the economy, studies show that active trading is not an effective way to build long-term wealth. However, the mainstream-ification of finance conversations and the availability of financial resources could be advantageous for Gen Z if they have the patience to stick it out in the stock market.

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