Saudi Press

Saudi Arabia and the world
Thursday, Dec 04, 2025

In defence of millennial investors

In defence of millennial investors

THE URGE of the old to lament the folly of the young is as ancient as civilisation itself. “The beardless youth…does not foresee what is useful, squandering his money,” scowled the poet Horace, in 15BC. This year silver-haired Wall Street pros have tutted at the enthusiasm of youthful stock-pickers, who have taken to punting on markets in the lockdown.
Manic millennials tapping screens piled into Hertz-after it declared bankruptcy. They dabbled with derivatives and bid up shares in Nikola, an electric-lorry-maker that later admitted to letting a prototype roll down a hill during a “demonstration” because it could not have powered itself. It may seem as if the only lesson is how not to invest. Yet as we explain this week, young people are changing how finance works (see article) and often for the better.

Every generation leaves its mark, but those aged 56-74 today, known as baby-boomers, had an outsize impact on America’s capital markets. Thanks to solid economic growth, rising asset prices and fat pensions, they have accumulated piles of financial savings-about $600,000 on average, held in retirement accounts and other vehicles for shares and bonds.

The asset-management industry has been built around this mountain of money. Specialists run pensions, index providers such as Vanguard let you track the market while snoozing, and wealth managers offer personalised service and perks to the rich. No wonder the number of jobs in finance has risen by 31% since 1990.

At first glance the young don’t look as if they have enough money to reinvent Wall Street. Those under 35 have, on average, just $35,000 in financial assets, and those born between 1981 and 1996 own just 7% of all such assets in America, a far cry from the 26% share that boomers had amassed by a similar age and the 50% slice they now hold.

Having faced two economic crises in about a decade, the young are less likely than their predecessors to own a home or a car. Half of those aged 18-29 say they have a positive view of socialism, according to Gallup, a polling firm.

Yet much of this is about to change as the young approach their peak earnings and the boomers retire and die. In recent years the churn in investible asset holdings has been relatively small, at around $1.3trn every five years, or 5% of total wealth in America. This pace is expected to double in a decade or so, as boomers begin to hand wealth to their children-either in their dotage or in their wills. By 2042 millennials are expected to have inherited roughly $22trn.

The young are also early adopters of new technologies and investment philosophies. In America digital-payments networks such as Venmo and Zelle are dominated by younger users even as their elders still scribble on cheques. Huabei, a credit service launched in China in 2014 by Ant Group, a fintech firm, now has a vast army of users-the pioneers were young people who could not get credit cards or bank loans.

Younger American savers are happy using robo-advisers, which automate investment across a range of cheap index funds. As technology has cut the cost of trading, it has become easier and cheaper for them to trade assets actively, too. The leading adherents of the sustainable-investing boom that has gripped asset-managers are those aged 24-39.

More than two-thirds of these young savers say they are very interested in making a positive social and environmental impact with their investments, compared with about half of the general population.

Some big financial firms are alive to the coming shift. Last year Morgan Stanley bought Solium, a startup that manages stock options and equity as they vest, largely for young tech workers. Goldman Sachs purchased United Capital, an investment-advisory firm popular with young professionals.

But much of the financial industry, still drunk on the colossal windfall from the baby-boomers, is unprepared. If those firms want to stay in business, then instead of laughing as the new generation experiments with finance they should be taking notes.
#ANT 
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Will Saudi Arabia End Up Bankrolling Israel’s Post-Ceasefire Order in Lebanon?
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
×