Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Young folks like excitement. Playing the market as they do on fantasy football until they face the first drawdown as in 2007. Experience is earned and often the hard way for many.
Brown's analysis ignores the role human capital or job security play into one's portfolio. A young person who has no job security and little saved should actually be more conservative investment-wise than someone older to maintain for instance an emergency fund in case of job loss. Jobs are much less stable today than in the past in general, so some conservative behavior may be warranted. Young people also may want to invest in their human capital by getting an advanced professional degree instead of investing in their financial portfolio. Would you tell for instance a young future medical student to invest more in stocks or pay their tuition and invest the remainder conservatively?
Comments