Higher interest rates, inflation push Gen Z investors to trade stocks on emotion. That may be bad, experts say

  • 📰 CNBC
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 72%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

It's the first time young investors have experienced high interest rates and inflation — and 87% have traded stocks as a result this year, a survey found.

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.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines