The 20-somethings betting big on tech stocks
In her teens, Michelle Huynh, the eldest daughter of migrant parents in Australia, made a promise to her family that she would become a millionaire by the time she turned 30.
The 26-year-old describes it as "a somewhat silly promise" inspired by the sacrifices her non-English-speaking parents made to raise the family.
But she is trying to make that dream come true by investing her savings in the stock market.
"Times are so different and investing has become a necessity," says Huynh, who works in sales for a tech firm. "It feels like our purchasing power is shrinking. This is the only way to combat that."
This year, the technology-driven surge in stock markets has edged her closer to that goal.
With more than a third of her investments in tech stocks, by the middle of July that part of her savings had jumped this year by 50% - a rise of A$31,000 (£16,100; $21,666).
But those gains have now eased to about A$22,000 as the sector is going through what she calls a "wild moment".
Huynh says she's prepared for the volatility, viewing those investments as a long-term bet.
The rise in tech stocks, led by firms riding the artificial intelligence (AI) boom, has attracted large numbers of ordinary investors, many of them in their 20s and early 30s, even as some analysts warn that the fervour around AI may be overblown.
Retail investors have been caught up in the excitement, which has been fuelled by social media and marketing efforts to draw non-professionals, says Glenn Tan from advisory firm Providend.
The tech-heavy Nasdaq in the US is up by about 10% this year, while Japan's Nikkei 225 has risen by more than 20%.
But many tech stocks have seen big swings - both up and down.
That volatility is most apparent in South Korea. Seoul's Kospi index, which includes tech heavyweights like SK Hynix and Samsung Electronics, has jumped by more than 50% since January.
The rally has attracted an army of retail investors, known locally as "ants", which has helped fuel volatile trading.
"I could maybe count with my hands the number of people who aren't investing today," South Korean investor U Chan Lee says. "Even stay-at-home mothers, like my mum, who has never been interested in the stock market, are now interested."
But the Kospi has seen some dramatic moves. Since hitting a record high of more than 9,000 points in June it has plunged to around 6,500.
Trading on the benchmark index has been halted seven times this year in a bid to calm panic selling after it fell by 8%.
Those slides have raised concerns over people who have borrowed money to invest in stocks, leading to South Korean authorities taking action to curb the practice.
Lee, 30, sold many of his shares last year when the Kospi surged, concerned the market was becoming "too overheated". Since then, he has shifted to buying stocks when they fall and selling them when they rise a few days later.
Singaporean business student Shyan Lim is a firm believer in AI-related shares, putting about three-quarters of his savings into tech stocks.
The 24-year-old says there have been plenty of "uneasy" days when his investments plunged by as much as 10%, but he is willing to take his chances.
Overall, his bets have worked so far. In October, he invested 23,000 Singapore dollars (£13,185; $17,845) in chipmakers Intel and Micron. Those shares are now worth about 100,000 Singapore dollars.
"It feels like I'm one step closer to retirement," Lim says. "While I'm still young I think I can take the risk. I probably won't take such positions when I'm older."
With more than half of his investments in tech, George Lee, who recently graduated, says he is well aware of the lack of resources and other disadvantages that ordinary traders can face.
"Investing doesn't just come down to luck, though it does play a part," Lee says.
"As long as the fundamentals of a company don't change, I'm ready for the swings since I have time to let my shares run."
Read the full story at BBC ↗
Young adults in developed Asia-Pacific economies are committing significant portions of their savings to technology stocks. The sector's link to artificial intelligence growth has drawn widespread participation from retail investors in their 20s and 30s. Market indices reflect this activity: the US Nasdaq has risen 10% this year, Japan's Nikkei 225 has gained over 20%, and Seoul's Kospi index has risen more than 50% since January. Individual cases show mixed outcomes within this trend: some investors report substantial gains, while others have experienced sharp reversals as volatility has increased. South Korea's Kospi, for example, fell from over 9,000 points in June to around 6,500, prompting seven trading halts this year to manage panic selling. Concerns about margin lending have prompted South Korean regulatory intervention to restrict borrowed investing.
Read the full story at BBC ↗
In her teens, Michelle Huynh, the eldest daughter of migrant parents in Australia, made a promise to her family that she would become a millionaire by the time she turned 30.
The 26-year-old describes it as "a somewhat silly promise" inspired by the sacrifices her non-English-speaking parents made to raise the family.
But she is trying to make that dream come true by investing her savings in the stock market.
"Times are so different and investing has become a necessity," says Huynh, who works in sales for a tech firm. "It feels like our purchasing power is shrinking. This is the only way to combat that."
This year, the technology-driven surge in stock markets has edged her closer to that goal.
With more than a third of her investments in tech stocks, by the middle of July that part of her savings had jumped this year by 50% - a rise of A$31,000 (£16,100; $21,666).
But those gains have now eased to about A$22,000 as the sector is going through what she calls a "wild moment".
Huynh says she's prepared for the volatility, viewing those investments as a long-term bet.
The rise in tech stocks, led by firms riding the artificial intelligence (AI) boom, has attracted large numbers of ordinary investors, many of them in their 20s and early 30s, even as some analysts warn that the fervour around AI may be overblown.
Retail investors have been caught up in the excitement, which has been fuelled by social media and marketing efforts to draw non-professionals, says Glenn Tan from advisory firm Providend.
The tech-heavy Nasdaq in the US is up by about 10% this year, while Japan's Nikkei 225 has risen by more than 20%.
But many tech stocks have seen big swings - both up and down.
That volatility is most apparent in South Korea. Seoul's Kospi index, which includes tech heavyweights like SK Hynix and Samsung Electronics, has jumped by more than 50% since January.
The rally has attracted an army of retail investors, known locally as "ants", which has helped fuel volatile trading.
"I could maybe count with my hands the number of people who aren't investing today," South Korean investor U Chan Lee says. "Even stay-at-home mothers, like my mum, who has never been interested in the stock market, are now interested."
But the Kospi has seen some dramatic moves. Since hitting a record high of more than 9,000 points in June it has plunged to around 6,500.
Trading on the benchmark index has been halted seven times this year in a bid to calm panic selling after it fell by 8%.
Those slides have raised concerns over people who have borrowed money to invest in stocks, leading to South Korean authorities taking action to curb the practice.
Lee, 30, sold many of his shares last year when the Kospi surged, concerned the market was becoming "too overheated". Since then, he has shifted to buying stocks when they fall and selling them when they rise a few days later.
Singaporean business student Shyan Lim is a firm believer in AI-related shares, putting about three-quarters of his savings into tech stocks.
The 24-year-old says there have been plenty of "uneasy" days when his investments plunged by as much as 10%, but he is willing to take his chances.
Overall, his bets have worked so far. In October, he invested 23,000 Singapore dollars (£13,185; $17,845) in chipmakers Intel and Micron. Those shares are now worth about 100,000 Singapore dollars.
"It feels like I'm one step closer to retirement," Lim says. "While I'm still young I think I can take the risk. I probably won't take such positions when I'm older."
With more than half of his investments in tech, George Lee, who recently graduated, says he is well aware of the lack of resources and other disadvantages that ordinary traders can face.
"Investing doesn't just come down to luck, though it does play a part," Lee says.
"As long as the fundamentals of a company don't change, I'm ready for the swings since I have time to let my shares run."
Read the full story at BBC ↗
Michelle Huynh, 26, made a promise in her teens to become a millionaire by age 30, inspired by her migrant parents' sacrifices With over a third of her investments in tech stocks, Huynh saw gains of A$31,000 by mid-July 2024, later easing to A$22,000 The Nasdaq in the US is up about 10% this year; Japan's Nikkei 225 has risen more than 20% Seoul's Kospi index has jumped more than 50% since January, including tech companies SK Hynix and Samsung Electronics The Kospi hit a record high exceeding 9,000 points in June, then fell to around 6,500, with trading halted seven times this year South Korea has taken action to curb margin lending after concerns over borrowed money fuelling volatile trading Shyan Lim invested S$23,000 in chipmakers Intel and Micron in October; those shares are now worth approximately S$100,000 Investing has become a necessity to combat shrinking purchasing power, according to Huynh The rise in tech stocks has been fuelled by social media and marketing efforts to draw non-professionals into retail investing Some analysts warn that the fervour around AI may be overblown
Read the full story at BBC ↗
- Young adults across developed Asia-Pacific markets are investing heavily in technology stocks, driven by AI sector enthusiasm and concerns about purchasing power erosion
- Tech-heavy indices have surged significantly this year (Nasdaq +10%, Nikkei +20%, Seoul Kospi +50% since January), attracting retail investors in their 20s and 30s
- Individual investors report substantial gains in tech holdings, though volatility has increased—Seoul's Kospi has swung from 9,000+ points in June to around 6,500, with trading halted seven times this year
- South Korean authorities are restricting margin lending after concerns over borrowed money fuelling volatile trading and panic selling