EBW's Howard Pressman Featured in TheStreet.com Article on "3 Reasons Why Millennials Are Still Terrified of Stocks"
June 3, 2018, The Street - Millennials are still terrified of stocks.
The market may have rebounded from the Great Recession lows, but millennials confidence in the investing process hasn't. Millennials invest less than 30% of their wealth in the stock market, according to a Deloitte Touche Tohmatsu Limited study. Here are three reasons why millennials are still suspicious of the stock market.
They Were Scarred By the Financial Crisis
Millennials came of age at the turn of the century - and during the worst financial crisis since the Great Depression.
"Just as Depression-era folks have certain money relationship characteristics that were formed based on their experiences, so do millennials," Egan, Berger & Weiner, LLC certified financial planner Howard Pressman told TheStreet. "I once spoke with a young couple about investing and they told me that they didn't want anything in stocks. The husband told me that his grandfather had lost everything during the 2008 crisis. Me telling him that it wasn't the market's fault wasn't going to help. Grandpa should never have been invested so aggressively that losing it all was a risk."
Millennials who still have decades before retirement shouldn't let "emotional responses" to market swings motivate their investment decisions, Pressman said. Investing now with a diverse portfolio will give their savings the opportunity to compound over time, while insulating them from market swings.
Learn from grandpa's mistakes.
Read the rest of the article here.