Silver Tsunami: Boomers See Value in Stock Market During Youth Exodus

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Elderly investors made five times as many trades in comparison to their younger counterparts during the year 2022 due to market volatility and inflation, according to data collected by a trading platform.

Unsettledness within the markets has caused more youthful investors either take a break or withdraw from participating altogether, while Baby Boomers find themselves taking advantage of this opportunity.

In 2020, Australian men aged 70 led the pack in terms of activity on the ASX-listed investment platform Selfwealth – with an average of 61.4 trades! This was followed by their 68-year-old counterparts, who posted surprisingly close figures of 60.3 transactions each.

10% of Selfwealth’s 130,000 customers can be attributed to the Baby Boomer generation. Millennial (52%) and Gen X (21%) cohorts are the predominant investors on this platform.

Baby Boomers are the most active traders, with an average of 31 trades made. In comparison, Gen Xers make 19.3 trades while Millennials make ten and Generation Z had 6.4 on average – demonstrating a downward trend in trading activity as generations progress through modern times.

“Older Australians are seizing the opportunity to buy and sell properties, while younger generations are taking a more conservative attitude by patiently waiting for the market to return,” said Selfwealth chief executive Cath Whitaker.

According to Sharesight’s in-depth analysis of over 150,000 investor trades, December 2022 saw a 24% decrease in the relative volume compared to February 2021. This reflects an overall decline from its peak earlier this year.

Even though Baby Boomers dominated the trading market, the younger generations are more inclined to invest rather than offload assets.

Selfwealth reported that Baby Boomers’ trades had a buy ratio of 57%, which then rose to 62% for Gen X investors, 66% for Millennials and 70% among those from Generation Z.

Whitaker suggested that the diverging trading strategies of investors could be attributed to those who are more experienced and feel confident in facing the current market’s tumultuous changes.

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