The Millennials are Gunshy: Only 26% in the Market

Too bad they didn't get in during college or they would have participated in one of the great bull markets of all time. Instead they are shying away in droves.

The kids are scared of the stock market.

Just 26% of people under 30 are investing in stocks, according to a survey published Thursday by Bankrate.com, a personal finance site. That’s compared with 58% of people between the ages of 50 and 64.

One of the reason why seems to be the millenials don't understand the market.

Of all of the age groups in Bankrate’s survey, 18- to 30-year-olds were the most likely to cite not knowing enough about the market when asked why they weren’t investing. In fact, 38% of survey respondents under 30 gave that reason for staying away from stocks. 

This goes to show you how poor financial education is in America. The concepts really aren't that hard to fathom and just getting into a cheap Vanguard S&P500 Index Fund would be enough for many Millineals to have participated in this last bull market.

However, seeing the Great Recession first-hand has made them hold onto cash and eschew debt (63% don't have Credit Cards.) That means when they finally come off the sidelines a great ocean of cash will be unleashed onto the markets. Hopefully, some of those profits will be used to get rid of their student loan debts and the economy will really be humming along.