'I don’t do boomer stocks': Gen ASX discovers investing. What could go wrong?

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A growing army of younger investors are piling into sharemarkets. So far they are being rewarded, but regulators are nervous | sdanck

Hayden Schampers doesn't invest in "boomer stocks". That’s how the 23-year-old part-time trader describes blue chip ASX listed companies — the household banking, mining and industrial names that have dominated portfolios for generations but to him are as old and boring as the people who run them.

"Unlike other traditional investments such as property, the amount of upfront capital required is considerably less. I believe being versed in current affairs is very important and as a result of this you’re able to see what impacts these have upon certain industries." Though he notes he does like some speculative stocks.

Schampers, Durrell and Maxwell are all members of Facebook groups where Gen Z and millennial members share tips and discuss trades often punctuated with emojis like rockets or spaceships —— to indicate a favoured stock. The young man’s suicide note made it clear his trading, and his belief he had accrued huge losses, was linked to his death. "How was a 20-year-old with no income able to get assigned almost a million dollars worth of leverage?", Bill Brewster, a relative of Kearns and the family’s spokesman following his death, tellsBrewster says his cousin "killed himself over nothing" because the deficit shown on his account was only temporary and didn't reflect his full trade.

Yanco says a recent review by ASIC found that retail shareholders were driving incredible growth in non-blue chip stocks. The review found that between April 6 and June 12, the share prices of 255 ASX listed companies doubled. Another 70 share prices of ASX companies tripled over that period while the share price of 29 companies quadrupled."Retail trading is really pushing a lot of speculative stocks, with pretty extreme run-ups," Yanco says.

Yanco also welcomes innovative new trading platforms, but says the term Robinhood traders these days in his mind refers to day traders acting as a group to fuel share price moves."They just need to be aware that they may be part of a community that’s participating in groupthink, ‘let’s go and buy X,Y and Z’ but they don’t know the fundamentals behind the stock."

 

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sdanck Young gamblers think they can make a quick buck, like during the dot com bubble. But the difference is this time we have the worst economic crisis. Should be fun.

sdanck “Investors” ? That’s cute.

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