JPMorgan: While older investors prefer gold young people invest in Bitcoin
JPMorgan Chase & Co. notes that the behavior of small investors changed during the pandemic
According to JPMorgan Chase & Co., the behavior of retail investors during the pandemic varies by age group.
JPMorgan strategists, led by Nikolaos Panigirtzoglou, noted that investors are often interested in alternative assets, but older investors are buying gold while younger investors are turning to investment tools like Bitcoin. Those born between 1980 and 2000, known as Generation Y, are interested in stocks, especially in the technology sector, while older people sell stocks, according to strategists.
“Older investors continued to invest their excess liquidity into bond funds, and these purchases remained strong in both June and July,” JPMorgan strategists said in their August 4 memo, analyzing investment flows.
This year’s demand from retail investors has been reflected in the 46 percent jump in global stocks from the March lows, the sharp rise in gold assets in gold-backed Exchange funds (ETFs), and the recent rallies in cryptocurrencies. The presence of amateur investors is also seen almost everywhere, from enthusiastic options to calmer trading movements. Stock choices and timing of these investors look pretty good when compared to institutions.