SPRINGFIELD, Mass. (WWLP) – There has been a drop in the number of Americans investing in the stock market.
A recent Bankrate survey reports that a mere 52% of Americans currently invest money in individual stocks. That is a drastic drop from the number of people investing in the stock market back in the 1950’s.
Financial advisor Mark Teed told 22News that one of the most noticeable shifts is the drop in how many Millennials choose to invest in individual stocks.
“I think the Millennials, because of what happened to their parents back in 2008, have gone extra careful with their investments. They’ve gone so far left, the pendulum has swung so far towards safety that they have given up growth,” Teed said.
He also told 22News that instead of choosing individual stocks, if Americans have the money to invest, they’re more likely to use it to put toward their 401K or other retirement savings plans.
Some of the reasons the survey found Americans seem to be avoiding stocks included a lack understanding of how the market works, and a lack of extra cash with which to invest.