Millennials and Gen Zers are closing Investment accounts due to inflation.
By The Exchange Team
According to an Ally Financial poll, some consumers are cancelling investment accounts due to inflation and volatility.
As investors prepare for another Fed rate hike, inflation is reaching a 40-year high and the S&P 500 is down 20% year to date.
Nearly 1 in 5 customers have closed an investment, trading, or brokerage account in the past year, with millennial and Gen Z respondents closing the most accounts (21%).
Nearly 40% of individuals surveyed sold investments owing to inflation, and 31% due to stock market volatility.
Without an emergency fund, some investors may sell assets to cover living expenses. Younger, inexperienced investors may have responded emotionally to market turbulence.
Cashing out may lead to regrets. MagnifyMoney found many millennials and Gen Zers who invested last year have regrets.
23% of millennials and 15% of Gen Zers wish they had invested more, and 15% regret selling an investment.