Capital Group CEO Urges Gen-Z to Pivot from 'Hobby Investing' to Long-Term Fundamentals

Mike Gitlin, CEO of Capital Group, is calling on Generation Z to abandon 'hobby investing' in favor of a disciplined, long-term approach to wealth creation. Speaking at the Converge Live conference in Singapore, Gitlin emphasized that attempting to time volatile commodity markets—often driven by ethical concerns or geopolitical events—is a precarious strategy even for seasoned professionals. The remarks come as the asset management industry struggles to engage a generation increasingly characterized by distrust of traditional financial institutions. According to the World Economic Forum, nearly 20% of non-investors in this demographic cite a lack of trust as their primary barrier to entry, with some embracing 'financial nihilism' by rejecting traditional wealth-building milestones. Despite ongoing conflict between the U.S., Israel, and Iran, Gitlin noted the surprising resilience of global equities. The MSCI World Index has recovered from a 3.29% post-conflict dip to trade 2% above its March 2 levels. Regional performance has been stark, with South Korea's Kospi surging 50% and Taiwan's benchmark rising 30%, significantly outpacing the S&P 500's 3% gain. While optimistic about the long-term trajectory of earnings and profitability, Gitlin identified sustained high oil prices as the primary systemic risk. He warned that prolonged inflation in energy markets could stifle global growth, eventually forcing a market correction. To mitigate this, he encouraged young investors to utilize AI tools for due diligence and focus on broader macro conditions rather than short-term swings.