eToro recently released a new survey concerning generational investment. The global trading platform and social network has around 11 million registered users worldwide.
The company solicited responses from 1,000 online investors. The research took place from July 18 to July 31. Respondents included Americans between the ages of 20 and 65. The sample size, therefore, covered:
- Generation X
- Generation Z
This article will cover some of the survey’s major findings. One of the most pertinent findings? What appears to be millennials’ interest in cryptocurrency.
Fear of Recession
More than two-thirds of respondents said they feared a possible recession in the U.S. They are worried about the safety of their current investments.
One reason for this concern is the uncertainty of the global markets. More specific geopolitical factors also play a role. Participants emphasized the threat of persistent trade conflict between the U.S. and China. The U.S.’s ongoing challenges with Mexico are also playing their part.
This fear of recession has led U.S. investors to want to diversify their stock portfolios. They want to find new, safer places for their assets. They are also open to looking for new forms of ownership.
Some of the most common routes appear to be:
- Hedging with commodities
- Putting money into real estate
- Investing in cryptocurrency
The desired options vary across generations:
Generation X respondents favoured hedging commodities. A reported 38% said they would turn to this option in the event of a recession.
Millennial (Generation Y)
The Millennial Generation was most interested in cryptocurrency. Of Millennials polled, 40% preferred this kind of asset.
A significant 50% of Generation Z participants said that they would elect for real estate.
Universal Appeal of Fractional Ownership
Traditionally, economic status limited investment opportunities. Options such as the ones mentioned above were too risky or expensive. In today’s environment, they’re becoming more accessible to the everyday investor.
This is also true of fractional ownership. Individuals across all generations are interested in this financial opportunity. Over half of the participants (55%) said that they would sell part of their stock portfolio. This would allow them to fund new fractional ownerships. Of those most concerned about a recession, 92% expressed interest in owning parts of entities such as:
- Landmark buildings
- Famous pieces of art
- Private startups
Owning portions of a local business was a popular option with over 80% expressing interest.
82% of respondents desired to own part of historical or otherwise famous real estate.
68% were interested in buying shares in music copyrights.
Barriers to Investment
Participants noted some of the barriers to investments. Around 50% of Millennials and 60% of Generation Z said that they would trade more if the process was simpler.
Participants proposed ideas that could make this possible. For one, they want transferring assets to other individuals to be easier. They also desire extended hours for the traditional trading window.
These results from eToro shed light onto the trading community, giving a clearer insight into generational differences and data by which to better anticipate the impact of a potential recession.