Power of investing in 2021 solely lies in the hands of millennials and tech-savvy individuals. The use of smartphone trading has exponentially grown over the past several years and the convenience of commission-free trading since 2013 has made investing and trading equities more popular than ever, especially amongst the younger demographic. Information travels faster than the speed of light through social media and it is easier than ever to follow equity price action throughout the day through sophisticated broker applications.
This leads Cathy Wood, CEO of the popularly followed investment management company Ark Invest, to believe that the bull market will not stop any time soon, possibly even into the late 2030s. “This is the echo of the baby boom,” she explained.
A prime example of the substantial impact that millennials have made on the stock market is the explosion of WallStreetBets, a Reddit channel that includes over 3.5 million users. Users tracked and pumped equities that were exposed of high short interest, and that resulted in names such as Gamestop (GME) and AMC (AMC) having short squeezes of over 2000%. That much growth for arguably the most fundamentally flawed companies on the market can not be attributed to anything other than a historic short squeeze and milestone for millennial trading.
Cathy Wood’s investments have also been focused on the most cutting edge technology names with the most potential over time. Of those investments include Robinhood(HOOD) and Coinbase (COIN), two of the leading brokerages for stocks and cryptocurrency and becoming the standard for younger individuals who want simplicity on their trading platform. Ark’s biggest holding lies within Tesla (TSLA) stock holding over $2.3 billion or about 10.5% of their funds value. Tesla’s appeal comes from the aspiration and proven success of their CEO Elon Musk. Elon is also a popular figure in the twitter community, known to pump and dump cryptocurrencies because of his large following. Another piece of how the power of smartphones is completely revolutionizing the world of trading and the future of generations to come.