watch nowThe Gen Z group includes anyone aged 18 to 26 with stocks or a related account like a 401 plan.
"Gen Z — and, in part, millennials — have never seen a period of high interest rates, nor a period of high inflation," said certified financial planner Ted Jenkin, founder and CEO of oXYGen Financial based in Atlanta. However, allowing emotions rather than logic to guide investment decisions generally leads investors to make "a bad financial decision," said Jenkin, who is a member of CNBC'sJumping in and out of market generally leads investors to miss the market's biggest days and can also lead to a bigger tax bill for investors, Royal said.of the S&P 500 shows that investors who missed the market's 10 best days per decade would have a total return of 28% between 1930 and 2020.
Investors can use a rule of thumb known as the "rule of 120" to determine a rough age-appropriate stock allocation in your portfolio, he said. This entails subtracting your age from 120 — meaning most Gen Z investors will have a portfolio that's about 90% or more in stocks, he said.