In 2016, the U.S. Census Bureau announced that millennials, those between the ages of 20 and 36, surpassed the Baby Boomers generation. Long the largest generation in the US’ overall population, Baby Boomers peaked at 1999 but have been aging and dying at a rate that exceeds the growth of Millennials.
The divide between the two generations seems even greater from a cultural perspective. The meteoric rise of technology over the last two decades created a culture shift that often puts the two age groups at odds. After all, the telephone reigned supreme for Baby Boomers, which is something of a novelty for Millennials who spend most their time conversing via text or social media from a smart phone.
There are also differences in how the groups invest. Baby boomers were raised to save and historically trusted banks and blue chip stocks with their wealth. On the other hand, millennials show great mistrust for banks since the 2008 economic crisis, and look to new technology companies for investment opportunities.
Believe it or not however, there are some similarities, too. According to Investopedia, a survey completed by TD Ameritrade of 6.5 million investors found that “Apple is the most popular stock held by both Baby Boomers and Millennials. Facebook, GE, Exxon Mobil, Microsoft, Intel, Bank of America and Berkshire Hathaway are in the top ten investments. In other words, the portfolio make-up of both demographics is approximately 80 percent similar in terms of holdings.”
At the end of the day, many investors focus on what they are familiar with, meaning Millennials may be more interested in technology companies while Baby Boomers remain more cautious. However, it’s really what matters to the individual that counts. That is why we embrace learning about each of our clients’ unique situations before offering investment guidance.
The views expressed should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary, so please consult with your financial advisor regarding your individual circumstances. Investing is subject to risks, including loss of principal invested. No strategy can assure a profit or protect against loss. Opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.