Market Overview

How Millennials, Baby Boomers Are Reacting To Market Volatility

How Millennials, Baby Boomers Are Reacting To Market Volatility

Last week’s massive two-day sell-off in stocks rattled investors. The experts are saying market fundamentals remain strong and investors should consider buying the dip; the latest numbers from TD Ameritrade Holding Corp. (NASDAQ: AMTD) suggest millennial investors are doing just that.

Volatility Returns

On Wednesday and Thursday of last week, the Dow experienced its largest one- and two-day drops since February, giving up 1,300 points in 48 hours. While investors are right to be uneasy and concerned, LPL Research Chief Investment Strategist John Lynch said volatility is not necessarily bad news.

“Volatility is also not to be feared, but embraced, as varying data points will cause bouts of market anxiety,” Lynch said in recent note. “But remember that fundamentals are still strong.”

TD Ameritrade senior trading specialist Shawn Cruz told Benzinga the volatility isn't necessarily surprising given the less dovish stance of the Federal Reserve in recent months.

“The change in tone from doves on the FOMC along with the charge higher in 10-year rates was enough to cause some selling,” Cruz said.

“As long as you can get treasury rates to stabilize and pullback and remain there, and you don't get negative news out of the banks, I expect markets to stabilize.”

So far, bank earnings have not disappointed the market, and the Dow opened Monday’s session decidedly the green.

Buying The Dip

Cruz said last week’s volatility was enough to spook Baby Boomers, who have been doing more selling than buying in the stock market. Generation X and millennial clients have been trading the volatility rather than running from it.

The stocks experiencing the most buying volume following last week’s sell-off include, Inc. (NASDAQ: AMZN), Advanced Micro Devices, Inc. (NASDAQ: AMD), Square, Inc. (NASDAQ: SQ), Apple, Inc. (NASDAQ: AAPL) and Netflix, Inc. (NASDAQ: NFLX), Cruz said.

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