Young adults, led by Gen Z, are investing earlier than ever. Here's how they're playing this year’s volatile market

Core Insights - The article highlights the trend of Gen Z investors starting to invest at a significantly younger age compared to previous generations, with an average starting age of 19, while Baby Boomers and Gen X began at 35 and 32 respectively [5][6]. Group 1: Gen Z Investment Behavior - Gen Z investors are actively engaging in various investment vehicles, including stocks, ETFs, and cryptocurrencies, with 56% of Gen Z individuals aged 18 to 25 reporting some form of investment [8][9]. - Among Gen Z investors, 55% primarily invest in cryptocurrency, while 41% hold individual stocks and 35% invest in mutual funds [9][10]. - Young investors are leveraging social media for investment decisions, with 32% using it as a reference for information [11]. Group 2: Individual Investor Profiles - Julia Greene, a 17-year-old, has a $2,000 portfolio and aims to familiarize herself with the stock market early on [1]. - Max Provencher, a 21-year-old, has a portfolio exceeding $20,000 and diversifies his investments across individual stocks, mutual funds, and a money-market buffer [3]. - Michael Paladino, a 27-year-old, has a portfolio of approximately $450,000 focused on tech and AI stocks, emphasizing the power of compounding returns [7]. Group 3: Investment Strategies - Young investors are encouraged to invest early and with intention, conducting research or consulting financial advisors [14]. - Staying informed about investments is crucial; Provencher actively tunes into earnings calls and company press releases [15][16]. - Automating investments, as demonstrated by Mary Esposito's $1,000 monthly contributions to her Roth IRA, helps build good saving habits and reduces emotional decision-making [18]. Group 4: Market Volatility Awareness - Young investors are generally more tolerant of market volatility, with the ability to ride out downturns due to their longer investment horizon [10][20]. - The article suggests that while young investors can afford to take risks, older investors nearing retirement should consider more stable, low-risk investments [17][20].