The current economic crisis is a moment of shock for the younger generation

In a 2011 study, researchers Ulrike Malmendier and Stefan Nagel showed that the progression of risky asset classes that people experience over the course of their lives has a significant influence on their willingness to take financial risks. People who have experienced high stock market returns have a higher tolerance for financial risk, are more willing to participate in the stock market and invest a higher proportion of their liquid wealth assets in equities. Recent events are weighted more heavily than events that occurred longer ago, as shown in the chart with the solid line.