Young investors from the millennial generation capitalized on the turbulence caused by Trump's tariffs, purchasing stocks at low prices.
Fearless Aid: In the wake of US President Donald Trump's liberation day tariffs, a fascinating survey reveals that one-third of millennial investors seized the market turmoil to grab a piece of the investment pie.
These young financial whizzes, buoyed by the research from Charles Stanley Direct, capitalized on the chaos that shook global financial systems. An astounding 38% of millennial DIY investors decided to invest in stocks and shares following the announcement of these sweeping tariffs, while only 16% of baby boomers, aged between 60 and 78, joined the frenzy. DIY investors, also known for their daring stakes in assets like cryptocurrency and gold, make up the majority of these brave investors.
In total, 31% of all investors invested in the tumultuous market, according to the survey of 1,000 investors. Marketplaces worldwide saw steep drops in the days following the liberation day announcements on April 2. The UK's FTSE 100 experienced its worst single trading day since the Covid pandemic's onset, while European, US, and Asian indexes also felt the impact.
The US's S&P 500, which tracks the country's leading listed firms, lost an astronomical £3.7 trillion over a two-day record of losses. However, most indexes, including the FTSE and the S&P, have since recovered these losses, as the US has recently struck new trade deals with countries like the UK and China.
Trump's continued face-offs with the US courts present efforts to challenge his trade policies. On Thursday, a federal appeals court permitted Trump to keep collecting import taxes for the time being, a day after a lower court blocked the duties.
Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, sheds light on the situation: "The economic turmoil following universal tariffs in early April was, to say the least, intense. Investors scrambled as markets plummeted and portfolios suddenly shifted course. Yet, a significant cohort of DIY investors seized this chaos as an opportunity to snatch bargains and fine-tune their investment strategies."
Meanwhile, other, more conservative investors turned to "safe haven" assets during the market tumult. Around 20% of investors purchased alternative assets like gold, which hit its highest price in April at roughly £2,600 per ounce.
Press Association
Enrichment Notes:
- Millennial investors' decisions to invest in the market might have been influenced by increased volatility, higher import costs, trade policy uncertainty, and sector-specific effects.
- Some millennial investors might have diversified their portfolios, opted for safer investments, or shown more caution due to the uncertainty.
- The tariffs could have affected industries like renewable energy or tech, which are often popular among younger investors.
- millennial investors, on the other hand, seen as bold and daring, took advantage of the market turmoil triggered by Donald Trump's liberation day tariffs, investing in stocks and shares, as revealed in a survey by Charles Stanley Direct.
- The S&P 500, which monitors the leading businesses in the US, experienced a massive loss of £3.7 trillion over a two-day period due to these tariffs, but has since recuperated as the US has struck new trade deals with nations like the UK and China.
- While some millennial investors seized the opportunity to invest in stocks and shares, a considerable number of more conservative investors opted for safer assets like gold, which rose to its highest price in April at approximately £2,600 per ounce during the market turmoil.
