While older generations spend months analyzing reporting, zoomers enter the market with excitement: why buy company shares when you can invest in NFT with cats and cryptocurrency? But do not underestimate these investors who grew up with the Internet in their hands. Behind the memes and seeming recklessness there are principles and strategies.
The statistics confirms the seriousness of their approach: according to the CFA Institute, a quarter of American zoomers started investing before they were 18. The pandemic has intensified this trend: the time spent in financial applications has doubled. This means that Generation Z is not only watching funny videos, but also seriously diving into the market.
For Generation Z, this is not only a way to make money, but also an opportunity to express values. They are not interested in the traditional buy-and-hold approach. Approximately 65% are ready to sacrifice profitability to support companies with environmentally friendly and honest practices. ESG funds and startups with a green agenda are their priority. If your business is related to oil production, you should not count on long-term support for zoomers. Although sometimes this choice is due not so much to ideology as to interest in a trend that can “shoot.”
What are zoomers investing in?
Stocks and ETFs
Classic, but with its own approach. About 73% of zoomers own stocks and ETFs – this is the main choice in their portfolio, but with a nuance. They are not interested in blue chips simply because “this is customary.” Zoomers choose companies that meet their needs: Tesla, Beyond Meat, Spotify. While the assets of banks and old energy cause them persistent rejection.
Cryptocurrencies
Nothing worries zoomers like crypto assets: 47% of them already hold cryptocurrency in their portfolio. The crypt for them is not just money, but a symbol of the independence and democracy of the financial system. Bitcoin, Ethereum and even Dogecoin have become symbols of the new world of finance for them. Yes, they are ready for risk and understand that cryptocurrencies can fall sharply, but they see this as a chance for freedom from the old financial system.
Education and personal development
Generation Z is also pragmatists. About 48% of students in this group participate in online courses and master classes, building competencies that can generate income. Zoomers consider investments in their own development an asset with high returns.
It is not yet clear whether the investments of the zoomers will bring a guaranteed profit and what the result of this financial eclecticism will be. But one thing is for sure: they enter the market in earnest, inspired by trends from TikTok and Reddit. Investing for them is a way to express themselves and support a future close to their ideals. They choose influencers who speak the same language with them, like cryptocurrency memes or peppy ETF reviews. Investment has become part of their everyday digital culture.
In the coming years, we are likely to see other generations adopt fresh approaches and courage from zoomers. As for the zoomers themselves, their course is clear: values and digital technologies are ahead, everything else is in stock.
By Evgeny Khodchenkov, founder of the investment company “League of Investors,” investor