Dallas-based Apex Fintech Solutions has released a report revealing “surprising” investing trends across generations in response to “major market-moving triggers, including the fallout from the Silicon Valley Bank crisis and ongoing stock volatility.”
Utilizing the company’s own data, the “fintech for fintechs” came up with what it calls “trend-bucking” behavior—including Gen Z’s increased demand for both gold and cryptocurrencies as well as millennials’ strong interest in buying bank stocks despite uncertainty in the banking industry.
The Q1 2023 Apex Next Investor Outlook analyzed investor data who trade through introducing brokers on the Apex Clearing Platform—across more than 1.3 million Gen Z accounts on one hand, and across 5.6 million accounts held by Millennials, Gen Z, and Boomers on the other. The data included trades made from January 1 to March 31, 2023.
What the data found:
Gen Z traders were the most fazed by recent banking uncertainties
When the SVB crisis hit the news, Gen Z seemed to take the news hardest—compared to older generations who’ve had more experience with financial crises that come and go. “On March 29, the peak selloff day for bank stocks, Gen Z sold securities at an even higher rate than all other groups of older investors,” Apex said.
“Gen Z investors were in elementary school when Lehman Brothers crashed in 2008—so in many respects, the Q1 bank crisis was really that generation’s first true financial crisis,” Connor Coughlin, Apex’ Chief Commercial Officer for fintech, said in a statement. “This is a generation that invests in disruptors and against expected trends—and over $70 trillion in assets will be passed down to this generation in the coming decades. Fintechs and advisors need to understand the attitudes, interests and values of this digital and disruptive generation.”
Millennials rock bank stocks
Far from fazed, millennials snapped up bank stocks during the recent uncertainty. “Shares of Charles Schwab (SCHW) shot up 21 places in the ranking amongst millennials, even while its overall market value plummeted by nearly 33%,” Apex noted. “Millennials also invested in First Republic Bank (FCRB), moving it up 25 positions in the rankings compared to Q4 2022.”
Generations agree on one thing: these 7 stocks
One thing younger generations aren’t derisively saying “OK boomer” about? The top seven stock holdings, which were the same across all generations on the Apex platform: 1. TSLA 2. AAPL 3. AMZN 4. MSFT 5. NVDA 6. GOOG/GOOGL 7. META.
Gold fever
Global retail demand for gold dropped 13% year over year from Q1 2022, Apex noted. But investors on the Apex platform were more zealous about the glittery metal. “In one week, from March 6 through March 13, the notional value of these investments increased 560%,” Apex said.
Gen Z’s love affair with crypto and digital continues
“Gen Z’s three hottest, climbing-the-ranks stocks in Q1 include a crypto-economy company (COIN); a Bitcoin ecosystem provider (MARA), and a cybersecurity business (CRWD),” Apex noted.
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