Displaying items by tag: millennials
The next generation of investors want diversity and green investments, but how do they want that delivered?…see the full story on our partner Positivly’s site
Millennials have had their investing horizons shaken up by a financial crisis…see the full story on our partner Positivly’s site
Investors have had to recalibrate over the last couple of weeks as Reddit users and memes positioned themselves as players on the real-world financial stage. Related byproducts to the internet culture are growth in ... View the full story on our partner Magnifi’s site
For those paying attention, ESG has had a great run over the last year. While many may feel that in an intangible way, the real world results are strong too, with ESG investments outperforming the S&P 500 by 1.3% in 2020. ESG investment experienced some solid outperformance early in the pandemic because if its natural defensive. Millennials appear to be driving the trend, which seems likely to only increase. More generally, the environment has become a major focus for both retail investors and major asset managers, like BlackRock, which has helped make the sector mainstream.
FINSUM: Our best call for ESG is that it will do great in 2021. The main reason being that the Biden administration is bringing a strong and renewed focus on the environment, which will both awaken public consciousness but also give ESG some favorable regulatory tailwinds.
One of the small but important pillars of the recent years of the bull market has been Millennials beginning to invest. However, as this coronavirus meltdown has unfolded, that growing support for the market may evaporate. Millennials mostly invest in the market via retirement plans, such as 401(k)s, but given the huge layoffs occurring, they are likely to have to raid their retirement funds in order to get through these hard times. Because of this there is likely to be billions withdrawn from the market.
FINSUM: Millennials were a growing part of the market, but given their often precarious financial circumstances, it seems like their participation will be less for the next year or so.