The coronavirus pandemic, which has “created a crisis that some economists believe could take the country nearly a decade to recover from,” is leading some individuals nearing retirement to evaluate whether or not to stay in the market. This according to a recent article in The Wall Street Journal.
According to data from Fidelity Investments, the article reports, “millions of individuals have decided to do the latter,” with nearly a third of investors ages 65 and up having sold their stockholdings between February and May—compared with 18% of investors across all age groups.
Although the stock market has recovered most of its pandemic-related losses, the article notes, there are growing fears of a second wave of infection that could send the market tumbling once again. For those hoping to retire in the next few years, the prospect of another downturn might be too much to endure.
“For the most part,” the article says, “financial planners and advisers recommend that individuals who are approaching retirement gradually reduce their exposure to riskier assets, like stocks, while increasing exposure to more conservative investments, like government bonds. What they don’t typically recommend is pulling out of the stock market altogether.”