Hello again!
Three months ago I made a reddit thread about Investing in Escapism. I took my observations as a gen Z living in SEA and I had good discussions in the previous thread with people sharing their experience and what industries/stocks might benefit from escapism.
My initial bets were: Alibaba (BABA), Tencent (700), and Meta. They're all doing well and I even added RDDT into my portfolio due to that thread, it's up over 100% now (sadly I haven't bought much of it yet).
I was still exploring into industries like BNPL which are really popular in poorer SEA countries (in Thailand where I live, the government warns that people are using BNPL to pay for food and groceries), and traveling (one redditor raised traveling as another thing to look out for, and from my observation it seems most Gen Z's seem to travel a lot, I see people taking a trip to Japan. I even plan one myself later this year). I ruled out Gaming and Alcoholism. (There was RBLX mentioned too, and it's been doing well this year)
While I was thinking about Escapism, It hit me that I, too, am one of the target demographic. There is a raising trend about Gen Z who take their finances much more seriously than previous generations. Crypto, trading, stocks are becoming common words. I started investing back when I was 22-23, now I'm 28 and it's changed my life trajectory massively. There are probably many who are also doing this. a gen Z investor/customer will mean a lifetime of commission/fees if a service can make them stick long term.
I'm not familiar with all the financial service or other non-stock space. My initial thought is obviously my broker: IBKR. I've been using their service since 2021 and I'm very happy with them. They have lower fees and global reach for both markets and clients. The financial knowledge in the US is likely the highest of the world, all the cheapest index funds and competitive brokerages are over there. I think the rest of the world will slowly catch up, which could mean positive outlook for IBKR who's positioned to benefit the most from the rise of retail investing (outside of maybe S&P 500 itself due to all the money flowing over there). Coinbase is another that comes to my mind but I haven't looked into it.
I want to hear your thoughts. Which stocks or industries do you think will directly or indirectly benefit the most from the rise of retail investing?
Thank you again for reading!
Investing in (the rise of retail) investing?
byu/timemon instocks
Posted by timemon
5 Comments
Wont be like this forever though, when we have a big crash or flat period people will dissapear. But Robinhood , Webull and Sofi are some examples.
Social media influence/education and real estate out of reach all adds up to more retail trading. Got to grow your money somehow
Escapism stocks is not where the money is generally speaking. The rise of retail investing? What does that mean? Retail investing has been a thing for eons. It’s not a recent rise.gen z is not taking their finances more seriously than previous generations. Gen x here and I’ve been investing for 30 years now.
Really like the way you’re thinking about this! You’ve connected your own habits to a bigger trend. Brokers like IBKR and Coinbase are obvious plays, but the real winners will be those that build trust and keep Gen Z investors engaged for decades, not just offer the lowest fees. Outside the US, retail penetration is still low, so global platforms that bring both access and education have a long runway. And don’t forget the indirect beneficiaries – exchanges, payment platforms, even financial media all gain when more people invest. Long term, it’s less about trading costs and more about who creates stickiness and loyalty.
Coinbase and Robinhood will continue to benefit from retail investing. Could you share that original thread please?