STAX Generational Trends: Gen X Leads the Pack

While major market indexes retreated from their all-time highs in June as inflation ticked higher and the Fed turned more hawkish under Chairman Kevin Warsh, Schwab clients across all generations continued to lean into the bull market. The Schwab Trading Activity Index™ (STAX)—which analyzes Schwab client activity to gauge investor sentiment—rose 7.33% month over month to 59.12, its highest level since February 2022.

"There was no 'June swoon' to be found among Schwab clients," said Joe Mazzola, head trading and derivatives strategist at Schwab. Mazzola noted that client buying was steady throughout the month, but it peaked during the mid-month pullback as investors bought the dip.

Gen X (born 1965 to 1980) remained the most bullish generation last month. Their STAX score rose 7.4% month over month to a multi-year high of 66.21.

Baby Boomers (born 1946 to 1964) hung on to the second spot, posting a STAX score of 59.00. However, Millennials (born 1981 to 1996) continued to close the gap with their parents' generation. Their STAX score rose 8.6% in June to 58.76—a record high since Schwab began tracking generational data in June 2024.

The Silent Generation (born before 1946) was slightly less optimistic, but still bullish. Their STAX score rose 4.4% to 56.74.

Gen Z (born 1997 to 2012) and Gen Alpha (born 2013 to 2024) continue to be the most cautious generations, but their STAX scores both jumped more than 6.5% last month, hitting 48.83 and 49.57, 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.)

Looking at STAX scores by assets under management, ultra-wealthy clients were still by far the biggest net buyers, but the STAX scores of clients with fewer assets rose sharply for the second straight month.

Clients with between $10,000 and $100,000 saw their STAX score jump 8.5% to a record 62.45, while the score of clients with between $2,000 and $10,000 popped 8.8% to a record 61.89.

Conversely, clients in the middle of the pack in terms of assets were more guarded. The STAX score for clients with between $100,000 and $500,000 rose 6.9% to 57.6, while the score for clients with between $500,000 and $1 million increased just 6.1% to 53.19. Finally, those with between $1 and $5 million were the most bearish, posting a STAX score of just 52.59.