a massive financial mistake
Millennials Are Hoarding Cash. That Could Hurt Them In The Long Run
Millennials are holding onto a lot of cash instead of investing that money in the stock market. That is going to hurt them in the long run.
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The Lede
Cash, the ultimate safety asset in the world of investing, is suddenly the hottest trade on Wall Street. What's notable about this flight to cash is that it's not the baby boomers hoarding dollars for retirement; it's millennials adding to their reserves.
Key Details
- Over the past two years, 55% of investors between 21 and 43 had increased their cash holdings, compared with 46% of investors 44 and older.
- For many millennials, the global financial crisis hit just as they were entering their working years. About a decade later, a pandemic delivered another blow to their psyches.
- Despite their coming of age in one of the longest stock-market rallies in history, millennials had 19% of their total financial assets in cash as of June 30, the most of any generation.
