A recent survey has revealed that more than a third of millennial investors capitalised on market volatility following former US President Donald Trump’s “liberation day” tariffs, buying stocks and shares.
According to research from Charles Stanley Direct, 38 per cent of millennial DIY investors took advantage of the opportunity to purchase cheap stocks amidst the financial market turmoil triggered by Mr. Trump’s announcement of new export tariffs.
In comparison, only 16 per cent of baby boomers, aged 60 to 78, engaged in similar investment activity during the same period. DIY investors are defined as those who actively select their own investments, including assets like cryptocurrency and gold.
The survey, which polled 1,000 investors, found that across all age groups, 31 per cent bought stocks during the market dip.
Stock markets around the world suffered sharp drops in the days following the so-called “liberation day” announcements on April 2.
The UK’s FTSE 100 saw its worst single day of trading since the start of the Covid pandemic, while European, US and Asian indexes also took a battering.
The US’s S&P 500, which tracks the country’s biggest listed firms, lost about five trillion dollars (£3.7 trillion) in value over a two-day record run of losses.
However, most indexes, including the FTSE and the S&P, have since recovered the losses as the US has struck new trade deals with countries including the UK and China.
Mr Trump is also facing roadblocks to his trade policies from the US courts.
On Thursday, a federal appeals court said it was allowing Mr Trump to continue collecting import taxes for now, a day after a lower court blocked the duties.
Rob Morgan, chief investment analyst at Charles Stanley Direct, said: “The fallout following the imposition of universal tariffs in early April was widespread, and especially alarming for investors as markets plummeted and carefully curated portfolios were blown off course.
“However, a large cohort of DIY investors were not simply looking to sell up or ride out the wave, but saw the market turmoil as an opportunity to seek discounts and reposition their investments.”
Meanwhile, other, more risk-averse investors flocked to so-called “safe haven” assets during the stock market turbulence.
About a fifth bought alternative assets, such as gold, the survey showed.
The precious metal hit its highest price in April, hitting about 3,500 US dollars (£2,600) per ounce, but has eased back slightly since.
