This CEO says young investors trying to protect their cash is stopping them from getting rich — here's why

Core Viewpoint - Many young investors are avoiding the stock market, which a financial expert claims could be their "biggest mistake" as it hinders long-term wealth building [1][2]. Group 1: Young Investors' Behavior - A significant portion of young investors, specifically 29% of Gen Z and 24% of millennials, find the stock market intimidating, which is higher than any other generation [2]. - Young investors are retreating into cash investments or bonds, believing they are playing it safe, despite historical data showing that stocks have outperformed these options over time [2][3]. Group 2: Investment Performance - From 1957 to 2024, the S&P 500 has delivered an average annual return of 11.84%, including dividends, compared to just 5.71% for 10-year Treasury Bonds [2]. Group 3: Advantages of Young Investors - The primary advantage for young investors is time, allowing them to let their earnings compound and recover from short-term losses [3][4]. - Understanding the benefits of long-term compounding can help young investors make more informed decisions [4]. Group 4: Risk Management Strategies - While investing in the stock market carries inherent risks, there are various strategies available to manage these risks effectively [4].