A rising trend among young investors is vibe investing, where intuition and life experiences play a crucial role in making investment decisions. Saul Oster, a 20-year-old student at the University of British Columbia, recently entered the stock market and plans to continue investing until retirement. He and his friends, who also engage in investing, often rely on gut feelings rather than thorough research when trading stocks.
According to a recent Ipsos poll commissioned by CIBC’s Investor’s Edge, 34% of Gen Z respondents consider financial advice from older generations irrelevant due to evolving markets, new financial tools, and shifting priorities. This cohort, including millennials, is more inclined towards adopting a risk-taking attitude in investments, as revealed in the survey results.
Oster’s success with intuitive trades has outperformed his research-based decisions, with his initial ETF investment in Canadian mining companies yielding over 180% returns in seven months. Many young investors like Oster and his peers prioritize emotions over logic when managing their finances, a behavior observed by personal finance mentor Liz Enriquez.
Enriquez highlights the increased accessibility and popularity of investing, driven by technological advancements that have made the process akin to online shopping. Young investors, motivated by the fear of financial stagnation, consider investing as a means to secure their future amidst rising costs and changing economic landscapes.
Andrew Aziz, founder of Bear Bull Traders, emphasizes the importance of educating oneself and starting early in the investment journey to build long-term wealth. While beginner’s luck may provide initial gains, Aziz cautions against relying solely on intuition and urges diversification to mitigate risks associated with investing based on trends and influencers’ recommendations.
As young investors like Oster navigate their financial paths, Aziz and Enriquez stress the significance of setting aside a portion of income for investments to leverage compounding interest and secure financial stability in the long run. Despite the inherent risks, Oster remains optimistic about the learning experiences gained through investing and aims to maximize his tax-free savings account contributions for a comfortable future.
