STAX Generational Trends: Gen X Buys the Dip
Key takeaways
- Schwab clients remained net buyers in July despite choppy markets, pushing the Schwab Trading Activity Index™ to its highest level since January 2022.
- Gen X continued to show the strongest bullish conviction among generations, increasing their buying even as younger investors became more cautious.
- By asset level, smaller-balance clients grew more bullish for a third straight month, while ultra-wealthy clients remained the biggest net buyers despite a sharp pullback in activity in July.
Rising oil prices, a hawkish Federal Reserve, and U.S.-Iran tensions helped fuel choppy trading in July, but Schwab clients remained net buyers through it all. The Schwab Trading Activity Index™ (STAX)—which analyzes Schwab client activity to gauge investor sentiment—rose 1.2% last month to 59.80, its highest level since January 2022.
Most generations posted a relatively strong STAX score in July, but once again, Gen X investors' (born 1965 to 1980) bullishness stood out. Their STAX score rose 2.9% month over month to a multiyear high of 68.19.
Gen X has consistently been the most bullish generation since Schwab began tracking generational data in STAX, but younger generations were closing the gap in the second quarter of 2026. That trend flipped last month, with younger investors pulling back amid the volatility, while Gen X proved willing to accumulate shares.
"Gen X showed the highest rate of bullish conviction that we've seen in many years, with a willingness to buy the dip in many oversold higher-beta stocks. Leading the list this month were SpaceX, Micron, Intel, Oracle, and Tesla," said Joe Mazzola, head trading and derivatives strategist at Schwab. "Their bullishness also accelerated during the month, even as the share price for many of these names declined beyond typical corrections."
While Gen X leaned in last month, Gen Z (born 1997 to 2012) and Gen Alpha (born 2013 to 2024) returned to their cautious ways. Their STAX scores both sank roughly 1% month over month, hitting 48.32 and 49.20, respectively. (Note: A significant portion of Gen Alpha's trading is likely done by guardians, who could be more risk-averse with their dependents' money.)
Meanwhile, Baby Boomers' (born 1946 to 1964) STAX score jumped 1.6% to 59.92, while the Silent Generation's (born before 1946) STAX reading rose 0.3% to 56.89. After seeing their STAX score soar in April, May, and June, Millennials (born 1981 to 1996) remained buyers in July, though their STAX score rose just 0.3% to 59.02.
Source: Schwab
For illustrative purposes only.
Looking at STAX scores by assets under management, ultra-wealthy clients remained by far the biggest net buyers. However, their STAX scores declined sharply month over month, while the STAX scores of clients with fewer assets rose for the third straight month.
Clients with $10,000 to $100,000 saw their STAX score jump 1.9% to a record 63.62, while the score of clients with between $2,000 and $10,000 popped 3.5% to a record 64.02.
Clients in the middle of the pack in terms of assets were more guarded. The STAX score for those with between $100,000 and $500,000 at Schwab rose just 0.7% to 58.02, while the score for those with between $500,000 and $1 million fell 0.05% to 53.16. Finally, clients with between $1 million and $5 million were the least bullish, posting a STAX score of just 52.49, down 0.2% from June month over month.
STAX reports on what traders are actually doing with their money, not just what they say they're doing. For more on the latest retail investor trading activity, check out July's STAX release.