What are Millennials and Gen Z investing in? Read on to find out what these groups are investing in and tips for successful investing that you can buy from them?
While Gen Z members were born between 1996 and the mid-2000s, the Millennials were born between 1980 and 1995. Yet, despite their age differences, members of these two groups are making good investment decisions that provide great insight on where to invest for better returns.
Consider these seven popular investments that the younger and middle-aged generation are putting their money into and generating high returns from:
Meme stocks are highly preferred by millennials and Gen Z members because they offer high returns within a short time. These stocks are top-rated among the young population., with 39% of Gen Z members holding these stocks and only 28% of millennials investing in them.
Some profitable meme stocks millennials and Gen Z members invest in include Blackberry, Palantir, Nokia, Virgin Galactic, and Bed Bath & Beyond. Also, these usually diversify their portfolio when investing in meme stocks for more chances of financial success.
Apple is more than just a technological giant in the world; it is also one of the most invested stocks by millennials and Gen Z today. And the Covid-19 pandemic has even increased its success rate, considering that technology was primarily used during this period. As a result, AAPL is a trendy investment in these 7 states: West Virginia, Mississippi, Alabama, New Mexico, Kentucky, New Hampshire, and Florida.
While most Gen Z members invest more in cryptocurrencies than millennials, vice versa is true regarding mutual funds. Approximately 47% of millennials invest in different mutual funds, with only 35% of Gen Z investing in these.
The reason why most millennials prefer mutual funds is that these allow for diversification. After all, the best stock research tools recommend investing in more than one type of stock or funds for lower risks and more profits.
Market research shows that about 40% of millennials and Gen Z investors hold Crypto. This makes Crypto the third most popular investment undertaken by these two groups, surpassing ETFs, bonds, index funds, and other similar investments.
And of the two groups, Gen Z investors register the highest investment in cryptocurrency. Also, male investors between the ages of 18-40 have higher chances of holding cryptocurrency than female investors of the same age group.
Growth, Value, and Dividend Stocks
58% of investors between 18-40 years investing in growth and dividend stocks. And comparing the two groups, millennials hold the most dividend stocks while Gen Z members own most growth and value stocks.
Similarly, more makes within the millennial and Gen Z age range are reported to hold more value stocks than their female correspondents. Even so, we can say that there is a healthy balance in the growth, value, and dividend stocks that both millennials and Gen Z members hold.
Plug Power is an electrical equipment company specializing in developing hydrogen-based technology, such as fuel cell systems that can be used in place of regular batteries.
Most millennials and Gen Z members are investing with this manufacturing company since technology is an ever-advancing aspect; hence, they expect more returns from these even in many years. More so, the stocks go for relatively lower prices (at only $27.24) than other tech investments.
The NIO automobile manufacturer is located in Shanghai, China. It specializes in developing smart, high-performance vehicles. During the Covid-19 period, the company registered over $2.49 billion in revenues. In addition, its share price has registered a significant increase over the past months. It is no order that most millennials and Gen Z members seek this high-profit investment today.
NIO stocks are top-rated among millennials who are willing to take high risks and generate more returns. The high stakes are due to external factors that the manufacturer cannot control. However, the emerging EV market provides good prospects that these millennials hold onto, hoping to gain long-term benefits from the investments.
For successful investment, you must first learn and understand the stock market. Then, you can increase your knowledge by using the best stock research tools, investment newsletters, or, better yet, looking into what millennials and Gen Z are investing in. Learning from successful investors will direct you into the right investment path, such that you make the best investment decisions like an expert!