October 1, 2023

Our site works better with JavaScript enabled. Learn how to turn it on in your browser.

By Lindsey Bell, chief markets & money strategist for Ally
Younger investors are shying away from the stock market.
The change of heart comes after many millennials and Gen Z got their first taste of the benefits of financial markets. The bull market, meme stock mania, and crypto frenzy of 2020 and 2021, attracted many newcomers. Then came 2022. Once-popular tech startups, travel stocks, IPOs and speculative cryptocurrencies endured sharp drawdowns. It’s been an uncomfortable reminder that stocks don’t always go up. But that doesn’t mean abandoning the ship is the answer!   
It’s not time to give up on investing now. A better approach—if you were among those who got caught up in the fervor of the boom—is to reframe how you think about money and investments. The stock market should not be treated like a casino. Rather, it’s a mechanism that can help you build long-term wealth over years and decades, not days or weeks.
A recent survey from Morning Consult left me a bit disheartened. When asked if they had at least one investment product in their household, younger respondents reported a steep drop from 2021. Just 57% of millennials and 49% of Gen Z adults claimed to own an investment account in June 2022, down from 70% and 60%, respectively, a year earlier.
Disappointing findings? Sure. Is there an opportunity? Yes. I want readers to take away three investing realities, so you’re encouraged to ‘keep on keepin’ on’ with an investing plan.
  Being committed to your financial future, having patience, and discipline is the best recipe for              building significant wealth.
To all the younger investors out there that crushed it in 2021 but now see lots of red on their position pages, take heart. Focus on the long haul, stay invested, and keep contributing to your investment plan. Consider working with a pro who can ensure you are doing it right.
Want the Weekly Viewpoint and other market trends delivered to your inbox?
Sign up for Lindsey Bell’s Expert Insights
Headshot of Lindsey BellLindsey Bell, Ally’s chief markets & money strategist, is an award-winning investment professional with a passion for personal finance and more than 17 years of Wall Street experience. Bell’s unique ability to connect the dots between data and real life and craft bite-sized money ideas that people can use and apply stems from her deep background as an analyst, researcher and portfolio manager at organizations including J.P. Morgan and Deutsche Bank. She is known for demonstrating why and how an understanding of all things money improves a person’s finances and overall well-being. An ongoing CNBC contributor, Bell empowers consumers and investors across all walks of life and frequently shares her insights with the Wall Street Journal, Barron’s, Kiplinger’s, Forbes and Business Insider. She also serves on the board of Better Investing, a non-profit focused on investment education.
More content from Lindsey Bell.
This icon indicates a link to a third party website not operated by Ally Bank or Ally. We are not responsible for the products, services or information you may find or provide there. Also, you should read and understand how that site’s privacy policy, level of security and terms and conditions may impact you.
A few things you should know
The information contained in this article is provided for general informational purposes, and should not be construed as investment advice, tax advice, a solicitation or offer, or a recommendation to buy or sell any security. Ally Invest does not provide tax advice and does not represent in any manner that the outcomes described herein will result in any particular tax consequence.
Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances.
Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss. While the data Ally Invest uses from third parties is believed to be reliable, Ally Invest cannot ensure the accuracy or completeness of data provided by clients or third parties.
Options involve risk and are not suitable for all investors. Review the Characteristics and Risks of Standardized Options brochure before you begin trading options. Options investors may lose the entire amount of their investment or more in a relatively short period of time.
Trading on margin involves risk. You can lose more funds than you deposit in a margin account. Please review Margin Account Agreement and Disclosure for more information regarding margin trading.
Securities products and services are offered through Ally Invest Securities LLC, member FINRA/ SIPC. You can find background on Ally Invest Securities at FINRA’s BrokerCheck. View Securities Disclosures
Advisory services are offered through Ally Invest Advisors Inc., a registered investment adviser. View Advisory Disclosures
Ally Invest Advisors, Ally Invest Securities, and Ally Invest Forex LLC are wholly owned subsidiaries of Ally Invest Group Inc. Ally Bank and Ally Invest Group are wholly owned subsidiaries of Ally Financial Inc. Securities products are NOT FDIC INSURED, NOT BANK GUARANTEED, and MAY LOSE VALUE.
Foreign exchange (Forex) products and services are offered to self-directed investors through Ally Invest Forex. NFA Member (ID #0408077), who acts as an introducing broker to GAIN Capital Group, LLC (“GAIN Capital”), a registered FCM/RFED and NFA Member (ID #0339826). Forex accounts are held and maintained at GAIN Capital. Forex accounts are NOT PROTECTED by the SIPC. View Forex Disclosures
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company, NMLS ID 3015. Ally Bank, the company’s direct banking subsidiary, offers an array of deposit, personal lending and mortgage products and services. Ally Bank is a Member FDIC and Equal Housing Lender , NMLS ID 181005. Credit products and any applicable Mortgage credit and collateral are subject to approval and additional terms and conditions apply. Programs, rates and terms and conditions are subject to change at any time without notice.
Ally Servicing LLC, NMLS ID 212403 is a subsidiary of Ally Financial Inc.
Ally and Do It Right are registered service marks of Ally Financial Inc.
App Store is a service mark of Apple Inc. Google Play is a trademark of Google Inc.
Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
From MONEY. © 2021 Ad Practitioners, LLC. All rights reserved. Used under license.
©2009–2022 Ally Financial Inc.
©2009–2022 Ally Financial Inc.
Options involve risk and are not suitable for all investors. Options investors may lose the entire amount of their investment in a relatively short period of time.
Prior to buying or selling options, investors must read the Characteristics and Risks of Standardized Options brochure (17.8 MB PDF), also known as the options disclosure document. It explains in more detail the characteristics and risks of exchange traded options.
November 2012 Supplement (PDF)
October 2018 Supplement (PDF)
You can also request a printed version by calling us at 1-855-880-2559.


About Author

Leave a Reply