Saul Oster, a 20-year-old student at the University of British Columbia, recently ventured into stock market investments with a long-term commitment.
Embracing the concept of passive income, Oster is attracted to the idea of generating earnings effortlessly through his investments.
He revealed that his circle of friends actively engages in stock market activities, often making decisions based on gut feelings rather than extensive research.
Contrary to conventional trading practices, Oster and his peers trust their instincts and personal encounters to steer their investment choices.
Based on a survey conducted by CIBC’s Investor’s Edge in partnership with Ipsos, it was found that 34% of Gen Z participants consider financial advice from older generations irrelevant due to evolving market dynamics and shifting financial priorities.
Moreover, the survey highlighted that millennials and Gen Z individuals exhibit a greater inclination towards adopting a risk-friendly approach to investments compared to the general population.
Statistics Canada and a TD Bank survey confirm the heightened involvement of Gen Z in stock market investments through RRSPs and TFSAs, facilitated by influencers making finance more comprehensible.
The survey also indicated that a significant proportion of millennials and Gen Z individuals are encouraged to embrace a more daring investment attitude, surpassing the average population trend.
The Trend of Vibes-Based Investing
Oster shared that his intuitive investment decisions often yield superior outcomes compared to those based on extensive research. His initial investment in Canadian mining companies through exchange-traded funds (ETFs) proved profitable, with a notable 180% increase in value over seven months.
Instead of solely relying on research-driven strategies, Oster and his peers trust their instincts and personal observations to guide their investment moves.
For instance, Oster mentioned a friend’s successful investment in Walmart, driven by the friend’s familiarity with the store’s budget-friendly offerings, assuming others with similar financial concerns would also favor Walmart.
Liz Enriquez, a finance mentor and the founder of Ambitious Adulting, emphasized that emotional impulses often influence people’s financial decisions, transcending generational boundaries.
Enriquez highlighted the democratization of investing through technological advancements, likening the contemporary investment landscape to online shopping accessibility.