"What we see among younger investors is a much higher propensity to have been taking action so far here in 2023 in the face of things like elevated inflation or the higher returns that are available on safe-haven cash investments," McBride said. "And there was an increased likelihood of selling or withholding investment rather than buying in response to that."
Financial advisor Jordan Awoye of Awoye Capital in Bay Shore, New York, said many young investors are tapping stock-heavy retirement and other investment accounts to cover everyday expenses. Awoye said younger investors are more likely than older investors to use retirement funds or money in a brokerage account to pay off credit card debt, buy real estate or invest in their own business.