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With her strong belief in the potential role millennials will play to power the growth of hand-picked stocks in the near future, Cathie Wood has been betting on stocks that appeal to millennials the most.
Millennials are no longer sitting on the sidelines in the investing landscape, a trend that has fueled a renewed interest amongst Wall Street stocks. Speaking to Yahoo Finance, the Founder and Chief Executive Officer of Ark Invest, Cathie Wood noted that millennials are going to dominate the investing ecosystem to build out their positions for years to come, a similar move likened to what Baby Boomers has done to equity stocks in the past years.
“I lived through the baby boom years, and that equity market move was magnificent. It was a very simple assumption, and it worked. And I do feel we are in the same place now,” Wood said.
Millennials are people classified within the age range of 25 to 40 years of age according to Kasasa. This set of individuals were born amidst the internet boom, and are generally known to be risk-takers. The disposition of millennials has impacted the market in recent times, with a growing embrace for tech-based stocks.
It is not news that companies with more futuristic product offerings have seen an increased embrace by younger investors. The shares of Coinbase Global Inc (NASDAQ: COIN) met with high acceptance when it entered the public markets back in April. This is because the company embodies support for cryptocurrencies, a new financial asset that has grown in popularity in the past decade.
Drawing on the fact that Coinbase was powering the evolution of money, investors, including millennials stumped the stock, pushing the trading platform to a market capitalization of $85.8 billion shortly after its debut, a valuation that effectively ranked it as the most valuable trading platform in the world at the time.
Millennials Role in Investing: Cathie Wood is Taking Position
With her strong belief in the potential role millennials will play to power the growth of hand-picked stocks in the near future, Cathie Wood has been betting on stocks that appeal to millennials the most. She has sizable holdings in Coinbase, as well as Elon Musk’s electric vehicle production company Tesla Inc (NASDAQ: TSLA).
Additionally, the Investor whose stock picks are known to perform extraordinarily well is also bullish on payment service provider Square Inc (NYSE: SQ), and Roku Inc (NASDAQ: ROKU) which are looking into becoming a super app and powering TV streaming services respectively.
“So many people ask me, ‘Are we in a bubble?’ We couldn’t be further from it. I do not believe that the average investor understands how productive these next five to 15 years are going to be [for stocks] as these S-curves feed one another and enter exponential growth trajectories that we have never seen before,” Wood said.
Millennials have good eyes for innovative stocks, and while some actions may be fueled by a bubble as we saw in the GameStop Corp (NYSE: GME) earlier in the year, sustainability is also being pursued by most of the investors within the age bracket.