Another interesting chart from the folks at CNN/Money shows in graphic detail the changing views about stock ownership by age group, the accompanying report noting how the Generation Y crowd is currently being hit with a double whammy – a recent history of market crashes and a job market that is much worse than for older workers.
What’s amazing about this data is the 35-49 age group where decades of conditioning that your best bet is “stocks for the long run” appears to have produced a nearly unshakable belief system. Even after ten years of dismal returns for equities (with the notable exception of gold stocks), Wall Street and the financial media should give themselves a pat on the back for being so successful in their efforts to convince the public that stocks are still a good bet despite the overwhelming evidence to the contrary.











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I’m not really sure how much wising up there is going on…. it just seems like they are looking in the rearview mirror like they did before. Back in 2001 stocks seemed safe because they’d gone up forever, now bonds seem safe because they’ve gone up forever. Given that “going up forever” leads to ridiculously high (aka risky) valuations, in neither case was/is the asset class in question actually safe — it just seemed that way to people who pay more attention to the rearview mirror than to valuations.
What’s scary is the 50 – 64 y/o group not willing to invest. Them’s the baby boomers and they’re a very big demographic.