DALLAS–(BUSINESS WIRE)–Apex Fintech Solutions (“Apex”), the “fintech for fintechs” driving innovation and the future of digital wealth management, today released the Apex Next Investor Outlook for the second quarter of 2022 (“Q2 ANIO Report” or the “Report”). . The report, which analyzes proprietary data from US-based investors trading through introducing brokers on the Apex Clearing platform, highlights the top 100 stocks1 held by investors across four generations, as of June 30, 2022, with a particular focus on the rising Gen Z2 demographically. The report also includes an analysis of cross-platform cryptocurrency trading data. Please note that the report is not intended as securities analysis or as a recommendation to buy or sell an investment and is intended for informational purposes only.
Apex data reveals that retail investors, and Gen Z in particular, fear a recession may be imminent. Consistent with the first-quarter report, Gen Z investors continued to focus their investments on traditional stocks throughout the second quarter, seeking security in dividends over high-growth companies. Verizon, Home Depot, and McDonalds rose significantly to #38, #39, and #40, respectively, while income-producing dividend players and energy stocks like Costco, Abbvie, and Chevron maintained investment momentum. As in previous quarters, stocks in the Gen Z top 10 included Tesla, Apple, Amazon and Microsoft.
Moreover, Gen Z, a generation that typically has less discretionary income to spend on risky investments, mirrored this shift in the crypto community through defensive reactions to recent market turmoil and fears of a crypto winter. Publicly traded crypto stocks, including Coinbase, Marathon Digital, Grayscale Bitcoin Trust and Riot Blockchain, lost significant value during the second quarter of this year. Notably, Coinbase fell from its previous ranking of #36 to #73, while Marathon Digital, Grayscale Bitcoin Trust, and Riot Blockchain dropped out of the rankings entirely from #59, #70, and #91, respectively.
Despite Gen Z investors moving away from crypto stocks during the quarter, data shows that millennial investors remain positive, especially in flagship cryptocurrencies Bitcoin and Ethereum. Approximately 370,000 new crypto-enabled accounts were opened in Q2, bringing total end-user crypto accounts to over 4.9 million. By generation, millennials represented 54% of crypto-enabled accounts, with Gen Z and Gen X each accounting for 21%. Baby boomers held only 4% of crypto-enabled accounts as of June 30, 2022.
“This quarter’s results indicate recession fears are accelerating with investors seeking reassurance in stable, income-generating dividend stocks amid market volatility. Furthermore, by expanding our quarterly report to analyze the behavior of Apex Crypto users, we gain a deeper, multi-dimensional understanding of ongoing mindset shifts across retail, including this fast-growing sector of the economy,” said Connor Coughlin, General Manager, Fintech at Apex Fintech Solutions. “As market uncertainty continues to rise, Apex is fully equipped to shed light on the inner workings of the investing community through this increasingly important report.”
Overall, the report analyzed more than 1.4 million Gen Z accounts, as well as more than 4.2 million millennial accounts, 2.1 million Gen X accounts and 0.6 million baby boomer accounts.
Topics in the Apex Q2 Next Investor Outlook include:
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Find security in dividends – Younger investors continued to embrace dividend stocks, perhaps seeking safe haven amid fears of a recession.
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Well-known revenue-generating companies climbed the ranks, including Walmart, which rose nine spots to #36, Verizon, up 22 spots to #38, and Home Depot, which gained 14 spots to #39. Food and beverage people also did well; McDonald’s rose 16 places to #40, and PepsiCo gained 18 places to #44.
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Natural gas distributors that offer healthy dividend yields showed gains, with Enterprise Products Partners climbing 18 spots to #70 and Energy Transfer rising 25 spots to #72.
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A crypto winter is coming, according to Gen Z – Gen Z investors appear to be preparing for a sustained downturn in the cryptocurrency market by moving away from publicly traded crypto-related stocks.
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Coinbase fell 36 places to #73, while three notable names dropped out of the rankings overall. Digital asset technology company Marathon Digital, Grayscale Bitcoin Trust and Bitcoin mining company Riot Blockchain fell from #59, #70 and #91 respectively.
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Millennials Keep Faith in Flagship Cryptocurrencies – Despite a tumultuous quarter in the digital asset ecosystem, millennials kept their faith in flagship cryptocurrencies Bitcoin and Ethereum.
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Bitcoin saw its price against the US dollar drop more than 50% in Q2 2022, but that apparently did not deter investors, as approximately 1,050 accounts opened a position in Bitcoin each day throughout the quarter. Millennials showed particular interest in Bitcoin, accounting for about half of the 591,000 accounts that hold the cryptocurrency.
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Ethereum saw its price against the US dollar slide nearly 70% in Q2 2022, but approximately 780 accounts opened a position in Ethereum each day during the quarter. Millennials made up about 50% of the accounts that held Ethereum.
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Summer sadness for travel shares – Travel demand is booming as bookings near pre-pandemic levels, but Gen Z investors are unimpressed. Expensive prices, staffing complications and planning nightmares make the picture worse for large travel stocks. Early glimpses of economic pressure could also dampen support.
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United Airlines declined six spots to #47, while American Airlines and Delta were down eight spots to #48 and #50, respectively. Airbnb dropped 19 places to #63.
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Cruise industry ratings also fell. Carnival fell 29 notches to #65, while Norwegian Cruise Line Holdings fell out of Gen Z’s top 100 overall.
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All aboard Elon Musk’s Twitter train – As news of Elon Musk’s proposed takeover of Twitter took center stage throughout the quarter, Gen Z investors responded enthusiastically, prompting Twitter to join the Gen Z Top 100 at #52. Similarly, in Tesla, more Gen Z investors bought into the EV maker, maintaining its top spot in the rankings.
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Gen Z support for Tesla also remained strong. The electric car manufacturer retained the first place and increased the number of positions among Gen Z by 5% in Q2 2022 versus Q1 2022.
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Crypto users across generations buying dip – Users with crypto-enabled accounts placed nearly four million trades on the Apex platform in Q2 2022, of which nearly three million were buy orders. As global markets sold off and drumbeats of recession grew louder, crypto-enabled investors across all generations showed steady interest as buy orders outpaced sell orders for Gen Z, millennials, Gen X and baby boomers.
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Crypto millennials led the charge, placing over 1.4 million buy orders against 580,000 sell orders (70% buys); Gen X placed 900,000 buys versus 300,000 sells (75% buys); baby boomers placed 170,000 buys versus 60,000 sells (75% buys); and Gen Z lagged behind placing 300,000 buys versus 160,000 sells (65% buys).
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To download the full Q2, 2022 ANIO report, click here.
About Apex Fintech Solutions
Apex Fintech Solutions LLC, “fintech for fintechs”, is the parent company of Apex Clearing Corporation, a FINRA-registered broker/dealer, custodian and clearing platform driving innovation and the future of digital wealth management, and Apex Pro, a trusted clearing partner to broker- dealers, ATSs, routing firms, professional trading firms, hedge funds, institutions and emerging managers. We offer cryptocurrency trading and custody services through Apex Crypto LLC3, a wholly owned subsidiary of Apex Fintech Solutions. Together, our suite of solutions creates an environment where companies with the biggest ideas in fintech are empowered to change the world. If you have the courage to dream, we have the courage to help you realize those dreams.
For more information, visit the Apex Fintech Solutions website:
Important information:
The availability of products and services may vary from country to country. Nothing herein constitutes an offer to sell or a solicitation of an offer to buy any securities, products or services of any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The summary data in this report is composed of specific types of accounts that met certain criteria that are cleared through Apex (eg, self-directed individual accounts within a certain age range at a certain point in time). Any company shares and ticker symbols shown here are for illustration purposes only and do not constitute a recommendation for any particular security. All investments involve risk. Investment returns will fluctuate and are subject to market volatility. An investor’s shares, when redeemed or sold, may be worth more or less than the original cost. You should consider your investment objectives, the risks involved and consult with an investment and/or tax professional about your specific circumstances before making an investment decision.
[1] Top 100 Stock Rankings reflect the 100 largest holdings based on nominal values as of June 30, 2022, held across all retail accounts on the Apex platform.
[2]The generations are segmented by the date of birth of the account holders: Baby Boomers: 1946-1964; Generation X: 1965-1980; Millennial: 1981-1996; Generation Z: after 1996.
[3] Apex Crypto LLC is licensed to engage in virtual currency operations by the New York State Department of Financial Services.
