Why Millennials Need to Get Over Their Fear of Stocks

After coming of age during the worst economy since the Great Depression, many members of the Millennial Generation have become wary of the stock market. But by putting their money into so-called “safer” investments, these young people are actually putting their future retirements at a much greater risk.

Over the past five years, many young adults in their 20s and early 30s, also known as “Generation Y,” have watched their parents (and, in some cases, grandparents) lose their jobs, get burned by the stock market and even lose their homes to foreclosure. Meanwhile, they have been trying to start their own careers in an economy plagued by unemployment.  Read More…

This article has 12 Comments

  1. Francis

    I think millenials don’t invest because they believe it is boring. Forget about buy and hold or diversification. Dont be afraid of risk, risk is good, risk is money. Why buy Facebooks stocks when you can sell a put? Why look at your stocks going down when the market is tanking when you can short it? Why complain about the price of coffe when you can buy and profit from coffee futures. Get away from traditional investing and start trading today. Be part of the revolution of financial freedom. We got great pieces of software nowadays for the retail investors. We are nimble and we have direct access to the markets a low cost with brokers like Interactive Brokers, TD waterhouse (direct investing), and Questrade.

    Get on with the program and stop being pessimistic about this and that, who cares about the glass half full or half empty…. just drink it, be opportunistic, too much thinking and not enough doing. Here are 3 free excellent websites for young millenials.

    1) Tastytrade is a webshow about options trading, it has a radio like format where guys talk about great ways to trade, and by the way nobody wear ties. You can start with the «where do i start segment» where Tom Sosnoff (my hero) show his daughter kasse how to trade.

    2) dough (dough options trading google it) : this is specifically tailored for millenials its a mobile application on desktop or tablet to better understand visually what options formations are like, put spread, calender spread, butterfly. iron condor, strangles, straddles, jade lizard, etc.  

    3) The Think or swim plarform accessible via the TD waterhouse papertrade (google it) this is a free platform to learn how to trade, you can buy and sell securities and options for free as long as you want. 

    No more excuses, just do it (I do not hold any positions at the moment in Nike nor will I in the next 3 days haha). have fun with it 🙂

  2. Kristoffer C

    As a generation y'er i can say that the real problem is we havent been educated enough to realize the true value of the market. We are told these days to avoid such things because back int he 2008 crisis things went sour.

    There was a time when big banks offered better rates — like 4%.

    Will i consider pushing into less safer investments. I dont know because we still haven't solved the problem hat caused the problems int he first place which was the US lack of oversight on their financial sector.

  3. Zecharia Batterson

    Yea well this is all fine and good but the question still remains: WHAT investments shoudl be made?

    I've been willing to look to long term investments but have been burned so many times. I'd rather just stick with the tried and true and know i am getting a guaranteed return even if that return is tiny.

    Bonds have been good for me as of late if that helps give people here hope.

  4. Trenton

    Most Canadians also dont realize they can get a one-time withdrawal from their RRSP accounts to invest into a new home.

    It's very useful since your home is also a long investment and buying into one early is a great idea.

    And the plus being CRA doesnt charge you any interest for doing so. You do have to put back the funds into the registered account within a time frame though.

  5. Jett Kammerer

    Ah yes, the dreaded inflation issue. It's been the same since the 50s. If you dont index against the market your savings are bound to lose value over time.

    Everyone should try to invest as much as possible and away from regular banks lousy interest rates.

  6. Benedict McCormick

    I feel old knowing that Millenials are those in the 20s and early 30s. Time really flys! I'm still not married 🙁

  7. Luca

    People should remember that its not just about investing in stocks but the type and the diversity.

    If you are looking to save for retirement the types you buy should be in a different category than those you'd get for TFSA investment accounts.

    Do your homework.

  8. Alek

    I ended up laghing aloud seeing the poor soul had $40,000 in his savings account earning only 0.1% annually. That bank is smiling right now!

  9. Dino

    What i find funny is that this group takes on less credit card and other debt when we are swamped with too much debt and now they are being told that they arent taking enough debt to do investing. Crazy world!

  10. Lamont

    If i were to turn back time i would so be listening to this advice closely. When i was young i was thinking everything will be fine and i will just party now and save later. Decades later and i am scrambling to put something away so i dont end up homeless and starving. Thank you CPP on our taxes. Never understood the value of it until later in life. 🙂

  11. Joban Wharry

    I've said it before and i will say it again:

    There needs to be introduction courses in school for kids to learn about the benefits to proper investing.

    Way too little time is spent doing this. In the long term it would be more educated Canadians who will contribute back to the overall health of the nation.

  12. Austyn Curtis

    Yes this is perfectly reasonable. If you look back at their earlier studies you will find that Gen Xers were the same way. Its a generational thing. Nothing new to see. They will come to and begin investing late in life, as every generational group does.

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