As it comes to two of the biggest generational segments of all time…
Baby Boomers and Millennials are as different from each other as any generation we’ve seen yet.
Gen X’s and Xennials may be the “bridge” between these two generations – but it’s not easy to find common ground – as Boomers and Millennials couldn’t be more dissimilar if they were created to be.
However…
It’s these two segments of our population that truly control the direction of our markets more than any other.
But can you guess which one rules the roost?
It’s truly amazing how different generational attitudes can control how a person feels about anything – let alone finances…
But it seems the world in which we come of age in really does impact how we feel about money – its trappings, its advantages – and whether or not to devote time to the pursuit of it.
Right now…
Two of the biggest generations – the Baby Boomers and Millennials – are battling for supremacy in the markets.
Boomers with the cash – Millennials with the technical ability – and one is in more control than the other…
But you’ll probably never guess why.
Recently, we’ve watched as our three major indices all close on new record highs…
The markets are continuing their decade-long bull run…
So why are some potential investors refusing to put their money in and watch it grow?
Well, it comes down one simple word…
Ability.
In a recent JP Morgan Chase survey of about 1,200 investors and non-investors the results say the reason for sitting on the sidelines is about liquidity or, at least, their perceived liquidity.
So it’s not that they don’t want to invest in the market…
They just feel they can’t.
The survey found that 42% of those “sideline sitters” were staying out of the stock market because they believed they didn’t have enough money to invest.
The head of JP Morgan’s digital wealth management division, Kelli Keough talked about the struggle some people have to save money in order to invest it.
“76% said that their everyday living expenses are too high,” according to Keough. “Secondly, 49% are still paying off a student loan. So that is an inhibitor for people to really start to invest.”
“Then 63% said that you need at least $1,000 or more to start to invest, which actually isn’t true,” Keough said. “And that’s really important for us to help people understand that investing is available for people who might have $50, $100. There are no minimums.”
And that’s an important point that a LOT of people don’t know or understand…
You don’t have to have minimums anymore…
There are ways – like the new Cash App – that will allow you to invest as little as $5!
So this liquidity issue shouldn’t be a roadblock to stop ANYBODY from investing.
That said…
Can you guess WHICH generation has MORE of an ability to invest?
That same survey showed that 21% of Americans don’t have a brokerage account or any other way to invest other than their company 401K or pension plan…
But for those who are investing there is a definite difference in the habits of Baby Boomers and Millennials.
“We know that Millennials who do invest are taking control… 71% are doing it on their own,” said Keough.
Keough commented that many Millennials use non-traditional sources for advice to invest, like mainstream media, podcasts, and friends’ advice.
“On the other hand, 68% of boomers are working with an adviser. So almost an entire flip flop. And we see Millennials are twice as likely to say that they’re working with a digital adviser.”
Well…
By that data it seems that Millennials are starting to take over – which is actually a VERY good thing – as they’re the ones who are working and actively affecting the economy on a daily basis…
While Baby Boomers are all starting to hit that retirement age.
It’s interesting…
It’s not so much of a “passing of the torch” moment between the two generations – but more of a baton – as the Boomers are still on the track and don’t seem like they’ll be getting off any time soon.
They’re still running…
And everybody else can learn by watching and listening to them.
As with age come experience…
With experience comes wisdom – and these guys are pretty smart.
That said – there’s one thing that ALWAYS rules Wall Street – no matter what generation you come from…
Data! It’s what makes GorillaTrades so unique – no matter if your 22 or 102 – if the data doesn’t support your decision, it’s probably not a GOOD one!
So, if you’re tired of second guessing your trades – or just want to give up control of the wheel for a while…
Give GT a try – it could exactly what you’ve been looking for to bring your trading to the next level!
Until next time…
“The ultimate test of man’s conscience may be his willingness to sacrifice something today for future generations whose words of thanks will not be heard.” ― Gaylord Nelson