A new survey has indicated that more younger Americans have given up investing due to losses incurred in the stock market, Reuters reports.
The survey, sponsored by the Mainstay Funds unit of New York Life Investment Management, found that 59% of investors between the ages of 22 to 36 owned investments outside of their retirement plans, down from 70% in 2002.
The survey also found that the percentage of these people who stopped investing because of market losses has risen from 4% in 2002 to 11%. A majority of these investors cited the main reason as being lack of funds.
Beverly Moore, managing director of retail markets at New York Life, told Reuters, "Those who perceive themselves conservative has increased steadily over the past three years. They are concerned about the prolonged recession and negative environment."
The timing of the survey of 515 people, however, may be slightly off. It was conducted in March, since which time the S&P 500 has risen more than 16%.
The survey also found, not surprisingly, that younger investors are less conservative in the types of investments they make than older generations.