It has become the social media of investing. Using platforms for social networking, which allows young investors to keep track of the stock-picking of each other, to mobile apps providing the ability for twenty-something hipster to locate financial planners that are equally hip, to website that open door for first-time investors wanting their share of the Silicon Valley VC, the latest tech tools have become the instrument of choice of the Millennial generation to put their money to work. Some experts fear that the tech-obsessed next generation will unknowingly have the same downfall as their elders, from following the herd of virtual stock-picking. At the same time, there are others feel that this furious innovation pace in financial technology could lead to a fundamentally change of how the next generation of investors will attempt to make their money grow.
Turning away from a hot stock tip that you might receive on the golf course with a friend, then questioning the possibility and eventually contacting your broker to purchase shares the traditional, a Millennial can instantly access their smartphone app and bring up analysts’ reports and financial numbers for a company. Another key attribute is being able to receive advice from a network of numerous fellow investors. When it comes to investing preference, Millennials, which is defined as individuals that will reach adulthood by 2000, choose using online tools more than the other age groups.
Greg Thomas, a 27-year old Sunnyvale investor states that people in his age group have been hesitant, when it comes to entering a market only a few years after the recent recession. For the time being, there more and more people in his age group that swap tips through social media. Thomas enjoys the interaction, because they all can learn the market together. It takes him back to the classroom setting, where they can share their ideas with people their age.