Goldman Sachs has released the latest in a long line of surveys about millennials and money. The findings won’t shock you if you’ve seen other such surveys: millennials get financial advice from their parents, they’re less concerned with privacy, they still want to own a home … someday.
But one familiar finding may be worth highlighting. Even as the stock market reaches record highs, millennials by and large remain wary of investing. Fewer than 20 percent of those surveyed by Goldman said that stocks are “the best way to save for the future.” Another 45 percent said they’re willing to dip a toe in the market or to put money into low-risk options. More than a third of those surveyed said they don’t know enough about stocks or felt that the market is too volatile or too stacked against small investors.
Part of that may because many millennials haven’t yet reached the life stage or the level of financial stability that would lead them to consider investing. But the lingering scars of the recession are evident in the results, too — and financial institutions clearly have a long way go to restore the public’s confidence in them. For example, Gallup just published a report called, “Why It’s Still Cool to Hate Banks.”
Goldman didn’t release the details about how many millennials it surveyed or when (and it hadn’t yet responded to an email asking for those details by the time of publication), but the results it got are broadly in line with those of earlier surveys. And they’re another reminder that not everyone is benefitting from the stock market’s record-setting rally. Millennials are still missing out.
Here is a chart produced by Goldman Sachs summarizing the results of their survey:
The Committee for a Responsible Federal Budget estimated this week that President Trump has now signed legislation that will add a total of $4.7 trillion to the national debt between 2017 and 2029. Tax cuts and spending increases account for similar portions of the projected increase, though if the individual tax cuts in the 2017 Republican overhaul are extended beyond their current expiration date at the end of 2025, they would add another $1 trillion in debt through 2029.
Are interest rates destined to move higher, increasing the cost of private and public debt? While many experts believe that higher rates are all but inevitable, historian Paul Schmelzing argues that today’s low-interest environment is consistent with a long-term trend stretching back 600 years.
The chart “shows a clear historical downtrend, with rates falling about 1% every 60 years to near zero today,” says Bloomberg’s Aaron Brown. “Rates do tend to revert to a mean, but that mean seems to be declining.”
Lawmakers are considering three separate bills that are intended to reduce the cost of prescription drugs. Here’s an overview of the proposals, from a series of charts produced by the Kaiser Family Foundation this week. An interesting detail highlighted in another chart: 88% of voters – including 92% of Democrats and 85% of Republicans – want to give the government the power to negotiate prices with drug companies.
From Gallup: “A record 25% of Americans say they or a family member put off treatment for a serious medical condition in the past year because of the cost, up from 19% a year ago and the highest in Gallup's trend. Another 8% said they or a family member put off treatment for a less serious condition, bringing the total percentage of households delaying care due to costs to 33%, tying the high from 2014.”