Younger do-it-yourself investors were far more likely than their older counterparts to buy into falling markets during the recent turbulence sparked by the Middle East conflict, according to new research from Charles Stanley Direct.
The study, from the Raymond James-owned platform and based on a July survey, found that 57% of millennials and 54% of Gen Z investors adjusted their portfolios to take advantage of market dips, compared with just 26% of baby boomers.
Older investors were more inclined to sit tight: 60% of boomers said they stayed the course and that their investments were fine, compared with around 54% of both younger groups.
Interestingly, the volatility had some lasting effects and left many investors more cautious. Some 41% said they felt more risk-averse as a result of the conflict, and 45% reported focusing more on building cash savings than investing, a tendency more pronounced among women, at 52%, and baby boomers, at 51%.
The uncertainty also drove more investors to seek help. Just under a third of all DIY investors sought more advice on their portfolios, rising to 44% among millennials.
Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, part of Raymond James, comments:”What we’re seeing is a clear distinction in how different generations navigate market turbulence. Older investors, having lived through multiple market cycles, naturally lean into resilience and stay the course, letting time do the work.”
“Younger investors, on the other hand, are taking a far more proactive approach to their portfolios. The data suggests that they see market volatility as an entry point, actively buying the dip while wisely leaning on professional guidance to help navigate the noise. It’s encouraging to see that despite pressures, panic amongst investors is low and long-term commitment to rebalancing portfolios remains strong.”