Edited and Curated by ZYTrade
Financial researchers have previously found that the rich and experienced investors are those who over time make the most money on shares by far. The researchers conducted the new study from the Oslo Stock Exchange with data and new methods that give them even more confidence in the results’ validity.
Figures from the non-profit foundation AksjeNorge show that more young small investors have entered the stock market in the past year than ever before. In March 2021, the Oslo Stock Exchange passed the half million mark for shareholders for the first time. As many as 40 percent of all new shareholders in the last three months are under 30 years old. And approximately 40 percent of shareholders have only invested in one stock.
Compared with pre-pandemic times, more than 130 000 new private individuals have started trading on the Oslo Stock Exchange The media constantly reports on young people and students who have doubled or tripled their money through bold stock purchases in companies such as Kahoot, NEL, Gamestop and Tesla.
When the coronavirus hit us in March a year ago, the Oslo Stock Exchange crashed. But the COVID-19 decline was quickly turned into a stock market party….
Amuli Knüpfer is a professor at BI and one of the researchers behind the new study of developments on the Oslo Stock Exchange… ‘It’s good that more people – and especially young people – are interested in stocks and mutual funds,’ says Knüpfer.
At the same time, the financial researcher is far from convinced that all these young investors will make good investments. Knupfer and his colleagues see from their study that stock market success has a lot to do with experience….
‘I’m afraid that a lot of people who’ve now made money on the stock exchange have a slightly overly rosy perception of what the future will bring,’ he says.
‘A lot of them could get burned….I’m afraid that a lot of people who’ve now made money on the stock exchange have a slightly overly rosy perception of what the future will bring,’ he says.
Original post on Science Norway
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