Its not hard to find an article about how the younger generations don’t trust the stock market and have little interest in it. The thinking goes that they saw their parents get burned in stocks in 2002 and again in 2008 which has made many of them steer clear of Wall Street altogether. It doesn’t help that we have had a faltering economy for years and most of the new job creation is low paying jobs. So, millennials don’t have the money to invest in stocks even if they did trust the market.
Millennials, without the funds prior generations had, are embracing the culture of sharing. The Internet has allowed them to share cars and rides (Uber, Lyft, Zipcar, etc.), rooms in houses (Airbnb), as well as a lot of subscriptions services like Netflix. They are happy renting rather than buying and that goes for cars and houses. Public transportation is more meaningful to this age group than any other group before it. This younger generation is less apt to own things or care about owning things because they just don’t have the money and they feel they might never have the money.
The stock market is for people with cash savings and there is no way around that. Plain and simple, in this culture of debt and low pay I don’t see millennials getting interested in stocks until they have money in their pockets. And that could be for a very long time and maybe never. The questions are how do we stop shipping jobs overseas, how do we stop illegal immigrants from taking our jobs, how do we start to create higher paying jobs, and how do we start to turn this economy around? How do we get the younger generation into a position financially that their parents and grandparents were in when they grew up?
Obviously, no one knows the answer to these problems or something would have been done about it already. The politicians in Washington are clueless and forever more concerned about their image and job than actually helping the country. Its sad but true.
So, it is my belief that millennials will continue to avoid and show disinterest to the stock market until a good number of them are somehow able to save enough money that they become interested in learning how to grow it. Until that happens, stocks will have no meaning to them and why should they? They’ve got bigger problems like trying to find a job and saving enough money just to pay their rents or move out of their parents’ basements.