Young investors undeterred by equity market volatility: Pearler
In a market marred by ongoing conflict in Europe, inflation, high interest rates, plummeting crypto markets, and knee-jerk fiscal policy, savvy young investors are buying shares 10 times more often than selling this year, according to recent insights from Australia’s leading long-term investing and wealth management trading and investment platform Pearler.
Despite volatility in global and domestic equity markets and ongoing macroeconomic instability, buy orders on Pearler for investors in their late 20s to early 40s have outpaced sell orders 8 to 1 as younger investors continue to build wealth.
Nick Nicolaides, Co-Founder of Pearler, said, “The heightened market volatility this year has presented many challenges for younger investors who are looking to grow and accumulate wealth rather than protect it.
“However, despite these setbacks, what we see is that investors on our platform have continued to trade, buying at a rate of 89 per cent vs 11 per cent sells,” said Nicolaides.
“Month to month it’s been interesting to see how continued negative news has played a role. In February and March, we saw investors largely brush off the macro fears, with inflows at 91 per cent of all transactions. April saw some slight attrition at 88 per cent but that has rebounded back to 90 per cent.
“While older investors look to protect their wealth as they approach retirement, younger investors who are starting their investment journey or who are still early in the accumulation phase are obviously concerned that the opportunities for wealth accumulation are drying up compared to previous generations.
“Today younger investors have access to financial information and news across various sources. This knowledge and the current economic climate are a catalyst encouraging investors to take a more active approach to managing wealth and build diversified portfolios.
“Investments like ETFs and more cost-effective, user-friendly trading platforms like Pearler have also opened up investing to a younger demographic set of investors,” Nicolaides noted.
