This past week was a clear reminder that volatility is always present in the stock market, and it can pop up when you least expect it. But chances are if you’re a millennial or novice investor, you thrive off of volatility.
Last year, online investing app Robinhood, which is best-known for its commission-free trades and gifting of free shares of stock to new members, picked up somewhere in the neighborhood of 3 million new users. This is noteworthy given that the average age of Robinhood’s user base is only 31.
Many of these young and/or novice investors have approached the market’s wild vacillations as an opportunity to get rich quick. Unfortunately, chasing momentum and penny stocks has left many of these millennials with portfolios that contain awful companies.