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posted by janrinok on Sunday January 23 2022, @04:48AM   Printer-friendly
from the what-goes-up dept.

Americans are bracing for inflation and a market crash: survey:

Inflation and a potential stock market crash. These are the two biggest threats to the US economy and to the financial wellbeing of Americans, so says a survey by personal finance software firm Quicken.

The Menlo Park, Calif.-based Quicken/SurveyMonkey online poll was taken earlier this month, which consisted of a sample of 1,200 US adults ages 18 to 74 from the Cint Consumer Network, according to Quicken's press release.

The survey revealed that nearly three-fourths who responded to the survey (71%) ranked inflation (currently at 7% and the highest since the early 1980s), as the top concern, followed by new COVID-19 variants, supply chain disruptions and a stock market crash. On that last point, the survey noted that 52% surveyed agree that there will be a stock market crash in the next five years. Of that group, 58% expect a looming stock market crash will impact their finances negatively, according to the press release.

Yet not everyone views a potential crash as such a bad prospect. Some Americans saw the financial gains that more aggressive investors had made from the day of the 2008 stock market crash, and are now looking to capitalize for the next one. According to the press release, 52% of self-described "aggressive" investors are likely to say the 2008 crash benefited them financially, compared to 18% of so-called "conservative" investors. What's more, 71% of aggressive investors, compared to 20% of conservative investors, believe a stock market crash in the future would benefit them financially. A notable percentage of respondents who believe there's going to be a crash in the next five years – 35% – agree that they're waiting for a crash in order to invest some extra cash.

A sizable percentage of younger adult generations surveyed – Millennial and Gen Z – also see the benefits to a future stock market crash. According to the survey, 41% of Gen Z and 36% of Millennials agree that they are waiting for a stock crash in order to invest their extra cash. Another 30% of Gen Z and 28% of Millennials say they're waiting for a crash so that they can start investing, according to the press release.


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  • (Score: 0) by Anonymous Coward on Sunday January 23 2022, @08:50AM (3 children)

    by Anonymous Coward on Sunday January 23 2022, @08:50AM (#1214960)

    Right, they should just contribute to this bubble instead!

  • (Score: 0) by Anonymous Coward on Sunday January 23 2022, @05:52PM (2 children)

    by Anonymous Coward on Sunday January 23 2022, @05:52PM (#1215046)

    The issue there is that when the bubble does burst, you may not have money available to invest, especially if you don't have that 3-6 months worth of expenses saved in an emergency fund. And if you try and wait, just being off by a few months on the timing, an cause even more losses than if you started investing now and did so consistently.

    One thing I've learned from the last couple bubbles is that you can't overestimate just how long the federal reserve will put off a market correction in the hopes that it doesn't actually come. Housing should have been allowed to correct during the great recession, but wasn't, the result being that anybody that didn't own a home at the time, had a much harder time buying one afterwards when the standards were higher and the costs didn't correct to something close to what they should have been.

    • (Score: 1) by khallow on Monday January 24 2022, @03:01AM (1 child)

      by khallow (3766) Subscriber Badge on Monday January 24 2022, @03:01AM (#1215176) Journal

      The issue there is that when the bubble does burst, you may not have money available to invest, especially if you don't have that 3-6 months worth of expenses saved in an emergency fund.

      Apparently, the people in question claim they were saving cash. I'd consider these boxes checked off.

      And if you try and wait, just being off by a few months on the timing, an cause even more losses than if you started investing now and did so consistently.

      Wasn't the case with the big recessions in 2000-2001 and 2008-2009. It took a while for stocks to recover. You could have held off for a year and still invested well. And stocks collectively didn't pass their February 2000 peak until a few years after the second recession! For example, the NASDAQ 100 passed that peak some point before August 2013.

      One thing I've learned from the last couple bubbles is that you can't overestimate just how long the federal reserve will put off a market correction in the hopes that it doesn't actually come.

      This is so true, but it also involves the federal government which has a variety of regulatory tools and just lots of money with which to push an economy along well past the edge of sanity.

      Housing should have been allowed to correct during the great recession, but wasn't, the result being that anybody that didn't own a home at the time, had a much harder time buying one afterwards when the standards were higher and the costs didn't correct to something close to what they should have been.

      When I read that, I thought, no those regulations were Department of the Treasury or somesuch. But yes, the Fed really does have the power to allow banks to ignore their reserve requirements by keeping real estate off the market (and valuing that real estate on the books well above its market value).

      • (Score: 1) by khallow on Monday January 24 2022, @04:14PM

        by khallow (3766) Subscriber Badge on Monday January 24 2022, @04:14PM (#1215273) Journal

        And stocks collectively didn't pass their February 2000 peak until a few years after the second recession! For example, the NASDAQ 100 passed that peak some point before August 2013.

        I was in error. Looking at the DJIA, it did pass its 2000 peak in 2007, but it didn't return to that peak until around 2013. Point is that recent recessions are slow to recover (my take due to a poor regulatory environment and really bad pseudo-Keynesian strategy).