One-Third of Investors Over 65 Years Old Dumped Their Stocks this Year - June 24, 2020
Stocks hit a near-term bottom on March 23 (WSJ, various sources, major U.S. market indexes) and have rallied sharply off the low.
Nearly 18% of investors sold all of their stocks between February and May per a study by LPL Research and Fidelity.
- Almost 31% over 65 years old completely got out of the market.
Some may have bought back in at higher prices, but money market funds hold almost $5 trillion, nearly twice what we saw this time only five years ago.
Timing the market is exceedingly difficult. You must be right twice – picking the top and the bottom.
Those who sold at an inopportune time, near the bottom, have watched with dismay as stocks have surged.
That said, financial decisions made under pressure are rarely optimal over the longer term.
In the event volatility strikes again, now is a good time to put a game plan in place.
If you have a well-thought out financial plan that is tailored to your specific circumstances and goals, we applaud you.
You are on the narrow road.