The Determinants And Implications Of Millennials’ Stock Market Investment Habits And Opinions

Millennials possess high levels of risk aversion when investing in the stock market. While it is true that the average investor, regardless of age, is typically risk averse, the determinants of millennials’ investment habits and opinions are much different than what has been observed in earlier generations. This research aims to examine what drives the decision making process millennials go through when forming opinions and making financial decisions. Many argue that despite having loan debt and low salaries, 20-somethings are at the optimal points in their lives to begin investing. However, an array of factors continue to prevent a large number of college-age students from taking that leap. Those already invested are taking revolutionary routes to do so. Eventually, the future of the market and involved companies will depend on millennials to perpetuate further growth. In order to adapt to the changes brought by millennials’ habits and opinions, many financial institutions may need to consider significant restructuring of their current strategies. With less than half of all Americans and 1 in 3 millennials being invested in the stock market, there is much to wonder about how millennials have gotten to this point, and what can be done to address it.