Young people are discovering the stock market

Mar. 10, 2021

Increased interest in investing comes with a risk. How we behave when we invest is a highly relevant topic these days when so many young people are investing in the stock market for the first time.

Anders Anderson has studied investment behavior and was recently interviewed by several Swedish media outlets about risks associated with trading stocks. One of the risks mentioned by Anders Anderson is under-diversification. Concentrated portfolios are in general associated with lower trading performance. Many of those new investors also tend to invest in high-risk stocks.

New and inexperienced investors also have a difficult time assessing their own skills in the financial market.

“It is generally difficult to assess your own skills, especially within areas where you lack experience and the amount of feedback is low”, said Anders Anderson to Dagens Industri.

More comments on individual investor behavior and recent events can be found in the articles below (in Swedish):

 

Ungas aktieintresse ökade dramatiskt under 2020: https://www.svt.se/nyheter/ekonomi/ungas-aktieintresse-okade-dramatiskt-under-2020

Forskarens råd: Så ska du investera på börsen: https://www.dagensps.se/bors-finans/professorns-rad-sa-ska-du-investera-pa-borsen/

Forskaren varnar för ”lotteri”: Missarna som gör dig till förlorare på börsen: https://www.di.se/nyheter/forskaren-varnar-for-lotteri-missarna-som-gor-dig-till-forlorare-pa-borsen/

Rekordstort intresse för aktiehandel – men riskerna är många: https://sverigesradio.se/artikel/rekordstort-intresse-for-aktiehandel-men-riskerna-ar-manga

Aktiesnacket exploderar: ”Alla filter bortplockade”: https://www.svd.se/aktiesnacket-exploderar-alla-filter-bortplockade