Advisors Urging Young Investors to Take Advantage of Cheap Stock Prices
Some young investors have seen their portfolios double, even triple, since the market low on March 9, and financial advisors are telling investors in their 20s and 30s to take advantage of stock prices at levels they might never see again in their lifetime, the Associated Press reports.
As one 30-year-old stock enthusiast puts it, “This is like buying a swim suit in the fall or a winter jacket in the spring. Get in while it’s a good deal.” Other young investors are taking advantage of the prices of foreclosed homes, calling it
“a historic time to make some great gains in the future.”
As Christine Fahlund, a senior financial planner with T. Rowe Price, put it, “We need to be shouting from the rooftops that this is not the time to get out of the market if you’re young. This is the time to be in the market.”
But for those retirees whose portfolio declined 40% or worse last year, the only recourse is tighter and tighter budgets. Not only that, but some pension plans are cutting back on payments by 10% or more.