On top of that, the Federal Reserve's moves to tame inflation have sent the stock market into a tailspin.
The S&P 500 index officially fell into bear-market territory on June 13, when it dropped 21.3% from its earlyJanuary high. (A bear market occurs when a broad market index falls 20% or more from its peak.) After a summer rally, stocks dropped again in September, and as of October 7, the S&P 500 was down 23.2% from its peak.
This series of unfortunate events is leading some younger investors to pull money out of the stock market or shut down their brokerage accounts entirely. According to a recent survey by Ally Financial, nearly 20% of investors closed a brokerage or investment account over the past 12 months, and of those, the largest group-more than 20%-consisted of millennials and Gen Zers.
Seeing my retirement savings shrink since the beginning of the year has made me queasy. But for me, closing my account is a nonstarter.
This story is from the December 2022 edition of Kiplinger's Personal Finance.
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This story is from the December 2022 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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