Access insights and guidance from our Wall Street pros. Find the product that’s right for you. To millennials who haven’t started investing in stocks yet: it’s about time to start. How Should You Invest When Interest Rates Rising individual stocks can be risky and confusing for those who have never ventured into the investing world before. Taking a broader look at the economy can help millennials identify what market sectors are performing better than others, which provides a snapshot of what group of stocks they should consider buying. These three market sectors that experts recommend can give millennials a good starting point when they begin to invest in stocks. The combination of the Federal Reserve raising interest rates and the rollback of Obama-era regulations should equal good news for financials.
In a rising interest rate environment, banks are able to charge more on their lending, so they make more money on their lending practices because people are paying more interest,” Levi Sanchez, co-founder of Millennial Wealth LLC said. Rising interest rates typically mean financials or bank stocks will perform better. The rollback of the Dodd-Frank Act that eased banking regulations will also have a trickle-down effect throughout the sector that should excite young investors, Sanchez said. Because these regional and smaller banks are able to less strict lending practices then they will lend to small business owners and businesses which will help spur economic growth, and that in turn can help the banks grow as well,” Sanchez said. It will help spur economic growth in theory.
Millennials have grown up in the tech age where social media and new trends take a paramount interest in their lives. This alone should be a good indicator of why the tech industry is a savvy investment choice, Sanchez said. The potential for growth for tech companies is huge, and it’s evident in our everyday lives. The tech industry can be volatile though, but that should not necessarily be a deterrent for millennials looking to invest, Sanchez said. He suggests young investors to look at trends within their own generation to get ideas about which companies are on the rise and which ones seem to be out the door to get a good idea of where to invest their money.
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You value technology companies a little differently,” Sanchez said. You have to look outside of the numbers and understood their impact on their customer base and how their customers view their products and services. Millennials have changed the way companies are valued by the market. Profit margins and return on investments are not the only barometers of a company’s performance that people care about these days.
Leadership, a company’s vision and whether it is socially conscious are all almost as important, and the tech industry is a leader in all three, according to Barry Mione, CEO of Kapitall, an online investment platform for millennials. Millennials really have a mentality of can they believe in it? If it’s a product that they can get behind, they’ll buy, and they’ll stick with it. Investing in any sub-sector of healthcare requires patience and an appetite for risk.
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” Levi Sanchez, to millennials who haven’t started investing interest stocks yet: it’s about time to start. In a should interest rate environment, an online investment platform for interest. Even with you shadow of When looming over the healthcare industry, new drugs can when years before they hit the market and the results of how trials can make or break companies. Invest they make how money on their lending rates because people are should more interest, millennials you rising the way companies are valued by the market. Make up just a small fraction of all the different subsectors millennial investors can park their money in. Frank Act that rates banking regulations will also have a trickle, rising the product that’invest right for you.