Young people seek financial freedom

On the one hand, the geopolitical risks, on the other, the mutation of the world order with the epidemic… As humanity fights against both unknown forces and between them, the economic effects which emerging one by one make living conditions increasingly difficult.

Especially with the reflection of inflationary effects on basic needs such as food and shelter, the effort to protect the standards used by all 7 to 70 “How can I increase my income? brings with it the question.

Although this situation has accelerated the search for additional income generation by investing in risky assets such as cryptocurrencies, the number of people, especially young people, who have turned to long-term investments in the stock market by targeting the ‘future, has increased significantly.

According to data from the Central Registry Agency (MKK), the number of stock market investors, which was 1 million 154,000,349 in 2019, increased rapidly during the epidemic period and exceeded 2 million 380,000 in March 2022. It should to note that people between the ages of 15 and 30 contributed the most to the increase in the number of investors.

The number of investors aged 15 to 30 on the stock market, which was at the level of 65,000 before the epidemic, reached 330,000 at the end of last month. The total value of the portfolios of the aforementioned youth group increased from 1 billion 398 million lira to 11 billion 719 million lira during the same period.

This pointed out that since 2019, the number of young investors in the stock market has increased 5 times and the total holdings have increased 8 times.

The outlook of younger generations on working life and retirement is changing

Analysts said that traditionally Turkish investors have been away from the stock market, but they observed that this trend reversed in society after the epidemic, with the changing economic environment in the world, the spread of technology and the increased use of social networks. media.

Pointing out that the increase in the number of stock market investors in recent years gives hope for capital markets, analysts said the critical element here; He said speculation is avoided and long-term investments are directed without aiming for daily return.

Analysts pointed out that the perspective of new generations on working life and retirement has also changed, and noted that young people who want to achieve “financial freedom” want to gain the freedom to work in the job they love, even if the income is low. or uncertain.

Explaining that there are young people who are introduced to the stock market at the start of their schooling or their professional life, there are also families who start saving in the stock market for the future education expenses of their children from birth. .

“Long-term investing develops self-discipline”

Financial Literacy and Access Association (FODER) Vice President Attila Köksal said the number of investors in the stock market has increased significantly since 2019, and said deposit rates and yields on instruments of the Fixed-income capital markets are lagging far behind inflation, driving people first to foreign currencies and gold, then to stocks. .

Noting that recently domestic investors have coalesced into two main groups as short term traders based on technical analysis and long term dividend investors, Köksal said: “It is very important that the discourses on Dividend investing and financial freedom are spreading among investors. It is very important to invest in well-chosen stocks that spread out over time and separate the risks. This usually produces good long-term results. The concept of long-term investing improves self-discipline in individuals, keeping them away from short-term risks. market forecasts. mentioned.

Emphasizing that no one can predict the direction of the markets in the short term, Köksal pointed out that institutional investors can access much more information faster than individual investors and traders.

Explaining that the advantage is still in favor of the institutional investor in the asymmetric information environment, Köksal said:

“Investing in stocks is a zero-sum game in the short term, even if it is not in the long term. Traders are institutional investors who can access a lot of economic, financial and political data that affects every day stock prices much faster than they do. , and algorithmic investors who decide when to receive this information and trade in fractions of a second are entering the same arena as processors and robots.

It is clear from the start who will be the winner of this fight. For this reason, my advice to stock market investors who do not have sufficient experience in the markets; They should avoid short-term trading transactions, never use leverage, ignore people who give short-term buy/sell advice on social media, make long-term investments by looking at data from businesses, learn technical analysis methods, but never use these methods for day-to-day trading.

Stating that it is better for investors away from the markets to make their equity investments through funds and spread them over time, Köksal added that detailed information on all mutual funds can be accessed through ” www.tefas.gov.tr” within Takasbank.

“There is a very serious wind of financial freedom”

Tuncay Turşucu Research Consultancy Inc. Founder Tuncay Turşucu said that the importance of the concept of “financial freedom” is better understood and there has been a very serious wind especially this year.

Explaining that he has done a lot of work to encourage parents and young people to open a stock market and save their dividends and growth stocks, Turşucu said, “I get messages from many families. Families who started saving stocks for their child’s education expenses and left behind 3-4 years said, ‘Well, we started.’ He thanks me. Likewise, I get comments that young people are starting to invest in the stock market in small steps. These are very good developments. mentioned.

Emphasizing that the stock exchange is not a place of gambling or a place where a lot of money is entered, Turşucu said:

“The stock market is not the place to get rich in the short term. We have begun to destroy these perceptions with the work we have done in recent years. We explain that savings are made in the stock market with an amount equal to a daily cup of coffee, these savings grow to incredible size after 15-20 years, and dividend income is derived from them. In short, we are telling you that you can generate cash flow without touching your assets. spreads.

I also see it in young people; They want me to raise money and get rich immediately. Professionally, we want to get somewhere in a short time, but these jobs take patience and hard work. We recommend investing dividends in young people not so that they feel comfortable today, but so that they can lead a freer life when they reach the age of 50.

There are also those who think that they can continue their life by accumulating only dividends… No, you will leave, you will earn your university, you will have your job. You will encounter these difficulties in business life, but you will also make this accumulation in small steps for the future. Financial freedom is not about snuggling up. This knowledge will allow you to get out of the psychology of working for money and have the freedom to do what you love in the future.

“Investing is waiting for the grass to grow, it takes patience”

Investment strategist Tunç Şatıroğlu said pessimism caused by recent global crises has led people to take more risks.

Explaining that this situation has increased the trend of cryptocurrencies, especially after the epidemic, Şatıroğlu said: “There are so many young people chasing unrealistic dreams that the money invested in crypto will increase 100 times. “This is a bad point of view. There are different alternatives where we can invest with little money. Mutual funds can be purchased, BES. “The stock market is a very reasonable investment in this sense. Buying something in the hope that the price will rise is not an investment, it is speculation. Investing is waiting for the grass to grow, it takes patience.” he said.

Şatıroğlu said dividend investing requires patience, but when the right portfolio is created from stocks with regular dividend distribution and high efficiency, the portfolio grows rapidly over the years thanks to the cumulative returns and the goal is achieved.

Emphasizing that it is necessary to be a professional to buy and sell on the stock exchange, Şatıroğlu said: “Otherwise, you risk suffering serious losses. In the field of dividend investments, the system is already clear and the rate of achievement is high. Anyone can do it.” mentioned.

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