The pandemic has affected global stock markets, including the world’s largest, the U.S. stock market.
However, in these difficult times of lockdowns and fear, there has been a large increase in young people who are investing online.
Although the stopping by COVID-19 has made markets unstable over the past two months, brokerage houses have taken advantage of this time to attract the attention of new customers, beginners who want to make money in the midst of this situation.
While it is not without a certain element of risk, many experts agree that the tumbling prices of the Covid crisis are the perfect fodder for new investors to jump in and buy at record-low prices.
Furthermore, nowadays there are a multitude of online platforms that allow people to quickly and easily get in on stock trading action.
Two companies, Charles Schwab and TD Ameritrade, opened 600,000 new accounts, each in the first three months of 2020. Another competitor, E*Trade – owned by the giant Morgan Stanley – indicated that it had created 363,000 during the same period. In other words, the signs are pointing to the fact that many are picking up on this moment as a golden time for investing.
Meanwhile, the Robinhood investment platform, which is very popular with people around the age of 30, reported that from January to May 2020 it had created three million accounts.
The principal increase in millennial customers occurred in March, when Wall Street hit record low numbers and gave many the opportunity to enter with little investment. And although the stock market had a revival in April, it has since fallen again. This has made the window of opportunity stay open for longer.
J.J. Kinahan of TD Ameritrade said the use of its financial technology tools has tripled in the first quarter of this year.
Many financial specialists have indicated that the economy’s shrinking and slow recovery during the pandemic have been the main factors in making this happen.
Many of this new generation of young investors are going for specific markets. For example, the travel industry is especially down at the moment, though many are taking advantage of buying in order to capitalize on its future recovery. Another sector highly sought after by this group is that of technology companies.
The events that have occurred due to the state of emergency have combined with measures taken by several companies to lower or altogether stop charging fees for the purchase and sale of shares or other products, in order to attract small investors.
Essentially, if you have long thought about entering the world of investing, perhaps now is as good a time as any to do so.