Has the market downturn of recent years affected your tolerance for risk? According to a study by TD Ameritrade, American have gotten more averse to market risk lately. More than half of all Americans say they'd rather miss out on a 10 percent market gain than get stuck in a 10 percent market drop. More than a quarter of those surveyed said they had moved their money from the stock market into safer ventures like bonds or CDs.
The breakdowns are interesting: Baby Boomers are more wary of the market, with just 15 percent of them saying they've invested more money in the market. By contrast, 34 percent of Generation Y's investors - people born between 1979 and 1988 - are back in the market. This might be a generational thing, or it might just be a result of where people are in their investing lives; in general, younger people ought to seek out more risk in their investments.
More surprisingly, men reported acting more cautiously than did women. Only 21 percent of the women surveyed had moved their money from the market to safer instruments, but 33 percent of the men had done so. Given that men are generally more risk-tolerant than women, that finding is pretty counterintuitive.
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