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Financial Crisis

Millenial Investors Already ‘Scarred’

Millennial investors are the most fiscally conservative generation since the Great Depression, a study released by UBS on Monday shows.

Though 21- to 36-year-olds describe their risk tolerance as either conservative or somewhat conservative 34%, their average asset allocation is extremely conservative, with the average portfolio dedicating 52% to cash versus 23% cash for other investors, the study finds.

— via Financial Crisis ‘Scarred’ Young Investors: UBS Study.

financial crisis

Credit: kzinn | morguefile

Why Being Conservative Never Pays Off

Being conservative is seen as a way to reduce risk — especially the risk of losing money during a stock market correction or crash.

But conservative investments don’t hedge against inflation. Look no further than the 30-year bull market for bonds, which will soon drive prices significantly lower.

I still believe the best way to grow your assets while hedging against inflation is to invest in stocks of great companies. Sign up for my email list to learn more  and don’t hesitate to contact me at david@www.valuealigned.com or 732-800-2375 for any assistance.