Increase in the number of young female investors turning to the stock market during a pandemic

Financial planner and accountant Natasha Janssens is not surprised to see young people turning to the stock market.

She said the pandemic, combined with the economic situation, had created a “perfect storm” of factors starting with low interest rates and people wanting a better return on their money than leaving it in a bank.

“People are now forced to take more risks than they otherwise would [to get a good return] and the stock market is the next logical decision, ”Ms. Janssens said.

The next factor is determined by what’s in your pocket, and that doesn’t mean your wallet.

“Add the lockdown, and maybe people got some cash help, but we’re not traveling anywhere or going out as much as we have.

“We have more free time because we don’t go to work and all of these things have helped make people think they are going to give the stock market a try.”

And a lot of people see the rewards.

With the exception of a significant drop in the ASX200 in March of last year, Australian stocks have seen a steady rise over the past five years.

More women go public

According to the Australian Stock Exchange Investor Study 2020, the past two years have seen an influx of young investors into the market, with a quarter of recent new investors between the ages of 18 and 24.

The report also found that almost as many women as men intend to start investing (49% women vs. 51% men).

Among current investors, 58 percent are men and 42 percent are women.

Ms Janssens said the change not only leveled the gender imbalance in the previously male-dominated investment world, but women might have a better chance of long-term success.

“Now the conversations are fluid and more information is available, more women are entering the stock market which is great to see,” she said.

Young people and the rise of cryptocurrency

ASX data shows young people most likely age group to own stocks with ETFs [exchange traded funds], which are common on investment applications.

But a booming area for young investors has been the rapidly fluctuating world of cryptocurrency.

Ms Janssens said embarking on a small cryptocurrency investment was safer than putting a large sum of long-term savings into emerging technology.

“It’s extremely volatile and if we want something to be a currency, it has to have stability.

“If you use Bitcoin and go to the supermarket, while you shop, the amount of money you have to spend on groceries fluctuates.”