The psychological toll of the Great Recession lingers among investors of all ages, new research suggests. Across the board, savers appear to be much too conservative with their portfolios.
Nearly 60% of retirees and workers past age 30 focus more on avoiding losses than maximizing growth, according to the Wells Fargo 2016 Retirement Study. This is fairly consistent among those in their 30s (59%), 40s (62%) and 50s (58%) and those 60-plus (52%).
Loss aversion is a common trait among those who have experienced traumatic declines in their wealth. It is especially acute in a country like Japan, where stocks have dragged for decades since their 1992 collapse. Anew study out of Tokyo shows nearly 80% of Japanese workers would not touch an investment that might go up 20% or down 10% in a year.
