They could.
According to The Economist, the U.S. stock market has generated a massive $24 trillion in gains over the past five years — and nearly half of it has gone to Americans over 70. Even more surprising? They’re still buying stocks at a brisk pace.
That flips traditional advice on its head. We’ve always heard that as we age, we should dial down risk — sell stocks, buy bonds, play it safe.
But bonds haven’t exactly been exciting. Over the past 20 years, 10-year Treasuries have averaged just 0.5% above inflation. Stocks have clearly been more rewarding.
So, what happens in the next serious downturn?
History tells us they can last a while:
- 1973–74 Bear Market: 24 months
- Dot-Com Bust: 31 months
- Financial Crisis: 17 months
If we hit another extended slump, will retirees sell to protect gains — potentially adding fuel to volatility? Or will they stay the course like seasoned investors?
The truth is, we don’t know how long the next downturn will last. What we can control is preparation. Ask yourself:
- Do I have enough cash for emergencies?
- Do I have reliable income to cover expenses?
- If those are covered, can the rest ride out a major storm?
If you’d like to take a deeper look at your portfolio, I’m happy to help.
Plan well,
Barbara
March 1, 2026
Source:
- Economist, Do Old People Own Too Many Stocks? https://www.youtube.com/shorts/XMsQmMS0igs
- Federal Reserve Bank of St Louis
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