Middle Class Continues to Develop Financial Stability
Middle Class Investors Poised to Return Following the Great Recession?
How will your investment portfolio be affected in a recession?
One of the results of the great recession of 2008–2009, as it has become known as, is a trend towards a healthier financial state for the American middle class. In fact, a recent survey found that 25% of families say they are now debt free. That is up from 14% just a few years ago. As a result, financial advisors and investment brokerages are now seeing more investors wanting to re-invest as we move further away from that shocking global financial event.
At the beginning of the recession it was obvious that American’s were saving more and putting a greater emphasis paying down their debt, across all income classes but especially the middle class.
For quite some time the investment community was unsure of whether this was a trend or a temporary emotional reaction. Eight years after the initial meltdown, the evidence continues to indicate a significant cultural shift.
American’s continue to save more, strive to eliminate their debt and are more judicious in their spending. This allows for more investment opportunities that should make the first few years of this new political cycle very interesting to watch.