Risk-taking is for the young—except, it seems, when it comes to investing.
The 2008 market panic, last year’s “flash crash” and the latest burst of volatility are proving to be more than many young investors can stomach. As a group, people in their 20s and early 30s are less comfortable taking risk than they were before the financial crisis, according to recent surveys—leading them to hunker down with safe assets at a time when many financial planners say they should be rebalancing into risky ones.
“We had Depression babies,” says Bill Finnegan, a senior managing director with MFS Investment Management, a Boston-based asset manager. “Now I think we have recession babies.”