Investing is about putting money to work so it generates a positive return over time. The earlier investors start, the more money they can make, making an investor’s 20’s vitally important. So why aren’t more millennials participating?
The Benefits of Investing Early and Often
Looking solely at the benefits, it’s hard to understand millennial reluctance to invest. Investing just $100 per year starting at 20 years old, with a minimum 5% return, would mean $17,667.02 sitting in a bank account upon retirement age (65). Doing the same thing, but starting a decade later? $10,035.23. While still substantial, investing earlier means 76% more money available at the age 65 – a huge difference! For investors who can sock away $100 a month instead of $100 a year, the numbers get into six figure territory.
With a help from a professional, or even a little research, achieving returns beyond 5% are well within reach. Yet despite these proven benefits, only 26% of people under 30 are investing in the stock market – a shockingly low figure.
Why are millennials eschewing future benefits and staying away?
The Reasons Millennials are Reluctant
Surveys and think pieces abound why millennials have cold feet, but the main culprits are usually the same: lingering student loan debt, a lack of knowledge about investing, and, by extension, a lack of confidence. The latter is the biggest culprit, and it doesn’t discriminate based on age group – people who lack investing education fear they will make poor choices and lose their hard-earned cash. It isn’t difficult to understand why 61% of millennials describe the stock market as “scary” or “intimidating” when placed in that context. This lack of investor education creates a vicious cycle: learning how to invest early helps build confidence, which provides the impetus to continue investing; not investing means a continued lack of confidence, which means staying on the sidelines.
Solutions
There is widespread belief that technology provides the answers to help millennials over the hump. Investment startups like robo-advisors are cropping up, with features like automated investing, low fees, and an emphasis on transparency. These “Fintech” companies often seek to simplify investing, removing the intimidation factor by breaking down contributions into smaller pieces. Companies are also leveraging interactive content to reach younger investors – educational videos resonate in a YouTube, Instagram, and Facebook-dominated world. These tools are engaging ways to demystify investment concepts, inspiring the confidence needed to save (and invest) for a better future.
Tickeron.com is seeking to be a leader in this new financial world. In addition to having over 3,000 financially-related articles in its online “Academy,” it has also developed user friendly Artificial Intelligence tools to help new and experienced investors generate investment ideas. Tickeron’s A.I. is capable of evaluating a portfolio and providing a “Diversification Score,” to tell the user how well-diversified their portfolio is. It can also generate investment ideas for a user’s 401(k) plan – even if you’re just getting started! The A.I. will give you ideas based on your risk tolerance, investment objectives, and the options available.
Tickeron’s new financial website is available to beginners, intermediate investors, and even experts and advisors. Explore tickeron.com today.
META saw its Momentum Indicator move below the 0 level on March 26, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned negative. In of the 84 cases, the stock moved further down in the following days. The odds of a decline are at .
The 10-day RSI Indicator for META moved out of overbought territory on March 08, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where META's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for META turned negative on February 21, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where META declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
META broke above its upper Bollinger Band on March 07, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where META advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 337 cases where META Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. META’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.224) is normal, around the industry mean (17.551). P/E Ratio (33.218) is within average values for comparable stocks, (53.617). Projected Growth (PEG Ratio) (1.121) is also within normal values, averaging (3.433). Dividend Yield (0.001) settles around the average of (0.025) among similar stocks. P/S Ratio (9.625) is also within normal values, averaging (27.591).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a social networking service and website
Industry InternetSoftwareServices