The financial crisis – and subsequent Great Recession – have taken a heavy toll on the Millennial generation. Many of them carried a heavy burden of student debt through years of sluggish job growth, anemic wage growth and ever-delayed plans for such basic adult pleasures as moving out of mom’s house.
Given all that, many Millennials remain suspicious – even contemptuous of – Wall Street. After all, was it not the Masters of the Universe on Wall Street who engineered the whole mess to begin with?
Perhaps then it’s not surprising to find out that only 1 in 3 Millennials are investing in the stock market, as we did from reading a recent report from Bankrate.com.
Bankrate reports that just 33% of Millennials polled say that they own stock.
This compares to 51% of Gen Xers (ages 36-51) and 48% of Baby Boomers (ages 52-70).
To be fair, only a minority of Americans polled (46%) said they invest in stocks.
Still, a general trend away from stock investing could hurt the long-term financial prospects of this huge generation.
Wall Street, for all its faults, as managed to produce some very impressive gains over the past three decades.
Financial advisers say that investors should start early, and shoulder the risks of stock investing while they’re still young enough to recover from occasional losses.
Avoiding the stock market may be understandable reaction to recent events, but it may not be a smart one.