Fewer younger people say they are investing in the stock market -- as rental costs, child care and food prices eat into their savings

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Fewer younger people say they are investing in the stock market -- as rental costs, child care and food prices eat into their savings
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Fewer younger people say they are investing in the stock market due to the increase in the cost of living

The S&P 500 has recently recouped half of the fall from its early January high, and some fund managers are sounding less pessimistic about the toll inflation and rising interest rates have taken on the market.

Fewer people say they are investing in the market compared to a year ago, and that’s driven by more cautious and risk-averse millennial and Generation Z households, according to Morning Consult research released Tuesday. The investor pool risks becoming “increasingly homogenous” — or older and wealthier — said Charlotte Principato, financial services analyst at Morning Consult. “There are signals that this shift is already happening,” she added.

That’s not to say there’s a general cooling on stock market investing. One quarter of people said the stock market is the best place to tuck away money they will not need to tap for a decade, according to a recent Bankrate.com survey. Mid-income households and younger ones have been mostly squeezed by rising rents, according to Bank of America BAC research. Rents saw a three-month average annualized increase of 7.3% — the fastest clip since 1990.

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