An Excerpt from the Article:
Despite having been mainly on the sidelines during the peak of the financial crisis, 82 percent of millennials say their investment decisions are influenced by it, according to a recent Legg Mason survey. An even larger share – 85 percent – say they invest conservatively, making millennials the most risk-averse generation of investors
Accepting that the market periodically swings widely could ease fears and curb emotional decision-making. As your mindset shifts, your risk tolerance may shift along with it. Ken Heise, a financial advisor with Heise Advisory Group in St. Louis, says a down market can benefit younger investors. When stock prices drop, that’s the time to buy, Heise says. Rather than fearing market cycles, millennials “should seize the opportunity and turn it into an advantage.
“Smooth out the roller-coaster ride. Learning to manage risk will help millennials brave the ups and downs of the market. A diversified portfolio, Heise says, can “smooth out the roller-coaster” ride, easing investor anxiety.