What are Today's Biggest Investors Doing?

And precisely where are they headed?

Maybe it's because they're too young to have experienced the last recession. Or maybe it's youthful optimism. Maybe it's both because 18 to 34 year olds were the most active investors in the past 12 months, a trend that is likely to continue through this year.

Young investors are the ones who are making the big commitments - buying and selling homes, opening retirement accounts, and taking out insurance policies. Compared to investors over age 35, twice as many young investors say they are more confident in the economy now than they were six months ago.

What are young investors looking for? Security and a trustworthy company, and indication of cautiousness and traditional investment values. They are willing, however, to consider investing in traditional products through non-traditional channels. Investors younger than 35 show a willingness to buy a variety of products, including real estate and insurance, through banks, for example.

They're investing more of their disposable income than their older counterparts, though for the vast majority the total value of their investments is still less $50,000.

In contrast, older investors appear more focused on smaller commitments: home equity loans and lines of credit, contributions to existing retirement accounts, securing personal or auto loans, and buying individual securities. Investors 55 and older were most likely to have sold securities, or closed credit card accounts.

Interest in long-term health insurance was highest among the 55+ population; still a surprisingly high percentage of 18 to 34 year olds also expressed interest in this product.

How do we know this and so much more?

Our Investment Monitor measures consumers' financial activities in the past 12 months and their plans for the next 12 months. We also measure the percentage of household income that is expected to be put in short-term and long-term investments over the next six months.

Our research approach offers substantial advantages over traditional consumer confidence tracking. Importantly, it includes specific products. Marketing strategies can focus on where consumer dollars appear to be heading.

Moreover, we ask consumers the percentage of income likely to be invested -- and where. Therefore, we can predict consumer interest in a variety of investments. The rich demographic and behavioral data we collect allows our clients to identify and leverage emerging opportunities, precisely.