Capital Group CEO Mike Gitlin, who oversees $3.3 trillion in assets under management, addressed Gen-Z investors at CNBC's Converge Live conference in Singapore, urging them to move beyond 'hobby investing' and adopt a long-term approach to wealth building [1]. Gitlin responded to a question from a father whose teenage children objected to rotating investments from gold to oil, labeling it as 'profiting from war.' An informal survey at the children's school indicated that approximately 80% of Gen-Z peers shared this sentiment [1].
Gitlin emphasized that neither gold nor oil should be the focus for young investors planning for the next 75 years, noting the difficulty of timing commodity markets even for professionals [1]. He encouraged Gen-Z to build 'paper portfolios' of stocks, conduct due diligence with the help of artificial intelligence tools, and focus on market fundamentals rather than short-term swings [1].
The discussion comes amid growing disillusionment among younger investors and declining trust in traditional financial institutions. According to the World Economic Forum's Global Retail Investor Outlook, Gen-Z's trust in these institutions has decreased over the past two years, with nearly 20% of non-investors citing distrust as a reason for staying out of the markets [1]. A segment of young investors has adopted 'financial nihilism,' rejecting traditional wealth-building milestones, while the majority indicated they would invest more if they trusted their investment platforms [1].
Gitlin's remarks were set against the backdrop of ongoing geopolitical tensions, specifically the U.S.-Israel war with Iran, which has lasted almost two months and has an uncertain outlook for a permanent ceasefire [1]. Despite these challenges, global equities have shown notable resilience, with the MSCI World Index erasing a 3.29% post-conflict slump and now trading nearly 2% above its March levels [1]. Gitlin highlighted that investors are looking three to five years ahead, focusing on earnings and company profitability, and advised young investors to adopt a similar long-term perspective [1].
CONCLUSION
Capital Group CEO Mike Gitlin's comments highlight the need for Gen-Z investors to prioritize long-term strategies over short-term, commodity-driven trades. Despite geopolitical uncertainties, markets have demonstrated resilience, reinforcing the value of a forward-looking investment approach. Trust in financial institutions remains a barrier for many young investors, suggesting that industry engagement and transparency will be crucial for future participation.