A rising trend among young investors is “vibe investing,” as seen in Saul Oster’s approach to the stock market. The 20-year-old student at the University of British Columbia recently entered the market and intends to continue investing until retirement. Oster values the concept of passive income, where his investments generate earnings with minimal effort on his part.
In a departure from traditional trading practices, Oster and his peers rely on intuition and life experiences to guide their investment decisions. Reflecting this sentiment, an Ipsos poll for CIBC’s Investor’s Edge revealed that 34% of Gen Z respondents view financial advice from older generations as irrelevant due to evolving markets and changing priorities.
The trend extends to millennials and Gen Z, with 21% and 19% respectively adopting a more risk-taking attitude towards investments compared to the general population. Oster’s success story further illustrates this shift, as his intuition-led trades, such as investing in Canadian mining companies, have outperformed his research-based decisions.
Liz Enriquez, a personal finance mentor, emphasizes that emotional factors often influence financial decisions. She notes that technology has democratized investing, making it more accessible and appealing to a broader audience. However, Andrew Aziz of Bear Bull Traders cautions against solely relying on vibes for investment decisions, stressing the importance of education and starting early to build wealth effectively.
While influencers play a role in guiding investment choices, Aziz warns against excessive reliance on their recommendations, highlighting the need for a diversified portfolio to mitigate risks. As young investors like Oster embark on their investment journeys, Aziz and Enriquez advise them to allocate a portion of their income towards investments to leverage compounding interest and gradually build financial security.
Looking ahead, Oster aims to maximize his contributions to his tax-free savings account and achieve financial comfort, recognizing that learning from losses is an integral part of the investment process.
