Has the ship sailed for Millennials?

2020. Yeah, let’s not talk about that.

But we should talk about the pandemic’s effect on the financial markets and investors’ habits.

2020 and onward was a Wild West of sorts when it came to investments. First, markets dropped sharply. Then they picked up again before fluctuating wildly in the later stages of 2021.

Understandably, some investors got spooked and dumped their investments to mitigate potential losses.

Well, that wasn’t a smart thing to do. With investing, what goes down comes back up again (historically). That’s why staying the course long-term is the best way to invest – a long game, if you will.

So who made up the bulk of these easily skittish investors?

Yes, that’s right, it’s the Millennials. But why did they bail more than others?

The pandemic’s volatility took a toll on this group, and many felt that cash looked more attractive since savings rates jumped up to 3-5%. Many Millennials remembered the effects of the Great Recession (which, for many, happened during crucial life periods like new careers, children, and first-time home buying) and got war flashbacks. So the natural move is to want to protect themselves.

But, as history has shown, the best-performing stock market days occur within about two weeks of the worst-performing days. This means less skittish investors scooped up all those stocks that the Millennials dumped in what’s called the ‘dip’.

That’s how the rich get richer!

Millennials that dumped investments were likely not informed investors working with financial planners, and they likely didn’t have an emergency plan. That includes saving 3-6 months (or more) of living expenses to have a cushion to help you avoid that desperation when your investments aren’t doing well. Many Millennials might be kicking themselves now for not riding it out, but it’s not too late for them to get back in the race.

Financial advice in turbulent times is sometimes worth more than gold. Protect yourself by working with a trusted and experienced financial planner. If you’d like a 15-minute consultation on how to help protect your finances, reach out to my office at 330-836-7800 or >>set up a time using my online scheduler!<<