Gen Zers are the most financially optimistic generation, according to a recent survey. This optimism has led to a surge of investment from Gen Zers, hoping to become wealthy. While optimism is important for investing, it is important to make sure you understand the risks and rewards of investing. This article will explore the viability of Gen Z's financial optimism as an investment strategy.
Vanguard recently closed its UK financial planning arm due to a disappointing number of investors. This is a reminder that even the most experienced investors can be wrong when it comes to predicting the market. While optimism is a great motivator, it is important to remember that there is no way to be sure that an investment will be profitable.
No landing economic scenario is just the last optimistic forecast that forgets the economy is beholden on low interest rates. Low interest rates make it harder to make money from investments, as returns are much smaller. This means that it is important to understand the risks and rewards of any investment before taking the plunge.