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18% of Americans plan to increase stock market investments this year


Thianchai SItthikongsak – Moment | Moment | Getty Images

Investors aren’t encouraged by the stock market’s wild ride. However, some investors do intend to profit from recent price drops.

Around 18% Americans would be willing to invest more in stock market investment this year. This includes retirement accounts. according to a recent survey from Bankrate. More than 1500 respondents participated in the online survey between April 19-22.

Bankrate’s chief financial analyst Greg McBride said that “when markets drop, it can represent a buying opportunity,” especially for the automatic savings from a retirement plan. A volatile year such as this can in the long-run be a good buying opportunity. You’ll be happy you made more.

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However, over 50% of investors stated that they will keep their investments the same in 2018. According to the report, only 18% of investors plan to decrease the amount they invest in stocks by 2022.         

Who will increase investment?

The survey revealed that younger investors (Gen Zs, millennials) are more likely to claim they will increase stock market investment this year.

McBride says this is a good sign because it indicates that they are establishing solid financial habits and staying true to them.

He said, “They have the longest retirement time frame.” The longer-term approach and the ability to invest more can help you compound your wealth over time.

While baby boomers are most likely to announce a decrease in stock investment this year, it’s more likely that their retirement plans will be affected than any fear of market volatility.

McBride stated that it could be part of their normal financial planning when they get closer to retirement, or as they move through retirement.

Market volatility

According to the survey, many investors seek out noise from the market.

According to the report, 56% have not made any changes to their investments because of volatility so far. 14% of those that made any changes bought more stock, while 16% moved funds out of their accounts to buy less.

Similar results can be seen in 62% of investors who have not taken any action despite rising inflation.