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The market as a whole taking a nosedive in recent months paired with 40-year high inflation has made many Americans anxious amid this current bear market.
\”the Bear Is in the House, Honey\”
The Harris Poll Tracker fielded from June 17th to 19th, 2022 among 1,653 U.S. adults found over half (52%) believe the bear market will last more than one year. 23% say a few months with only 8% saying only a few weeks.
Nearly two-thirds (64%) say the recent market drop signals a recession is imminent with only 36% saying it's a normal fluctuation and there's no need to panic. 72% of retirees and 71% of Boomer are most concerned the downturn signals an imminent recession.
Financial Woes Ahead
62% of Americans show concern the recent market drop will negatively impact their financial situation. 65% of those who are retiring soon are worried and about a quarter (24%) says they are very worried.
What's Your Backup Plan?
Of the 62% worried about the recent market declines a third (33%) say they are worried because their investments are their backup plan if an emergency happens. 19% say said investments are a safety net if they lose their job.
Boomers are worried about the recent declines as their investments are their emergency backup plans (38%), and also planned to use their retirement accounts soon (21%).
Brighter Future Later, Not Now
22% of Americans believe their financial situation will be worse in a year. 50% say in the next five years they'll be in a better shape financially and 57% say they'll be better in a decade. Today, 62% of Americans rate their financial situation as very or somewhat good while 38% say their situation is poor.
The Older the Worse
Generation Zers are least likely to consider their financial position as very poor (17%) with 15% of Millennials and 23% of Boomers saying the same.
Many young people under the age of 60 have never seen over $5 gasoline prices or 6.5% mortgages. The era of milk and honey with plentiful everything is in decline and the bear market has not only intruded the property line, it's in the living room.
As a certified credit counselor and syndicated writer at MaxMyMoney, Max has coached over 250 Millennials to help take the stress out of money. When Max is not coaching, you'll find him reading financial books, indoor cycling, or visiting local pawn shops looking for swiss-made watches.