Retail investor participation in financial markets will continue to grow in 2022, but investors – particularly younger ones – are wary of the risks ahead, especially a cryptocurrency crash, according to a survey for a Danish bank.
Despite such concerns, 56% of respondents plan to increase their investment allocation to crypto, while 59% would increase their allocation if the asset class was regulated.
Inflation and a more widespread stock market bubble leading to a correction were second and third biggest concerns for young investors. Just 13% were concerned about the impact of the coronavirus pandemic on their investments.
Despite the recent stock market performance, 59% young investors still plan to increase their stock
Young investors continue to use social media as their primary source of information, followed by news sites and forums.
Reddit, Twitter and Facebook were seen as the most important media platforms for investing, while tech stocks, working-from-home (WFH), energy and so-called “meme” stocks expected to perform best
Investors Aged 18 to 34
Polling company Ipsos surveyed 250 UK investors aged 18 to 34 years in January 2022 on behalf of Saxo Markets UK, a unit of Copenhagen-based Saxo Bank.
Most of them were drawn to investing to earn extra income, followed by securing their long-term financial future. One in seven cited “fun” as the reason for investing.
“A quieter but more sustainable cohort of younger investors is emerging which will shape the future o investing for years to come,” Charles White-Thomson, chief executive of Saxo Markets UK, said.
“Many such investors have, however, not witnessed a market crash or a major financial crisis,” he added.
“So it is critical that alongside their increased investment activity, they not only seek credible sources of investment information but also look to diversify their holdings.”
- George Russell
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