Yes, there is a big difference in risk appetite overall between the two Generation X groups surveyed as part of Global X Management’s commissioned report, “Getting to Know Gen X and Millennial Investors.” In the research completed by ORC International and commissioned by Global X Management Company, Cautious Consulters and Knowledgeable Xers appear to view risk entirely differently. But digging under the surface a bit shows that both have a conservative investment philosophy as their baseline strategy.
These Gen X investors came into the workforce just as the tech boom of the 1990s was roaring into being. As they were starting families and settling down, the Great Recession of 2007-2009 was unfolding and many witnessed their parents lose significant savings, perhaps even a house, as a result. Cautious Consulters, consequently, will hesitate to make any changes once a portfolio allocation has been agreed to.
Knowledgeable Xers are a bit different. They too, are very cautious, to a point. Once these investors feel that most of their savings are safely in stable, lower-risk assets and their future is secure, many in this group believe part of the remainder can be invested in riskier assets.
This week we examine affluent Generation X members surveyed and reviewed for this report. Check out our new article on Thursday.