Young Investors Are Becoming Afraid Of Wall Street

Facebook is a juggernaut of a company that has captured the interest and imagination of many first time investors. Unfortunately, for those who had no experience in investing and had to learn how to buy Facebook stock during the IPO, it has turned into a really bad situation.

Right now, the stock is down more than 50% from its IPO price and that is quite a hit for an investor of any experience level. For those who had never bought a stock before, investing in the market is something they might shy away from in the future because of that big loss.

The stock market is losing credibility with younger investors who are daily fed the impression that it is rigged toward the rich. Occupy Wall Street and the mentality that the rich get richer while the little guy gets stomped on has made many younger adults who are in their 20’s and 30’s distrust big corporations and buying stocks.  Many are investing in less scrupulous schemes involving online stocks often using rotating proxies to purchase multiple options.

This is a terrible shame as everyone should understand how the stock market works and have a portion of their assets in it as historically it has provided the highest rate of return. Anyone who is serious about retiring in today’s world need to actively build their savings and one of the weapons in their arsenal should be stocks. But for younger people who are now permanently turned off by the market, their chances of ever becoming self dependent have been greatly reduced.

The Current Economic Situation

The last few years have been extremely rough economically both for business and for individuals. We have seen many established business disappear from the high street as well as countless independent businesses. The impact that this has had on communities is catastrophic and many people have found themselves without employment.

This situation has seen countries really struggle in the global market, the situation over in Greece is just one example.

Keeping up to date with the financial news can be confusing as well with some reports showing that we are far from recovery while others point to employment in certain areas rising and shops beginning to see the light at the end of the tunnel. For people sitting at home watching or reading these reports it might not make any difference to their own situation and we are seeing people in all walks of life beginning to tighten their belts and look at ways that they can save money.

Some sites online are handy for people looking for advice on how to save money from travel and motoring to banking and general home running. This impartial advice, click here, can save households hundreds if not thousands of pounds a year. There was very much a culture of waste in society but with things the way they are people are being far more responsible and we are now seeing people being more thoughtful. Not only does this save a bit of money but could have a great impact on the environment as energy wastage continues to plummet.

It may be a few years before we find ourselves economically stable again but hopefully by that time there will be a few good habits that people have got themselves into.

Further Reading – BBC Live VPN