The increased interest in stock ownership during the pandemic was a potential opportunity for a broader segment of Americans to benefit from rising values, but now that the market is falling, it could mean we end up in a worse place. Moving forward, perhaps this experience will inspire new enthusiasts to take a more realistic approach to the risks in their stock portfolios, instead of quenching their zeal entirely.
Allison Schrager is a Bloomberg Opinion columnist covering economics. A senior fellow at the Manhattan Institute, she is author of An Economist Walks Into a Brothel: And Other Unexpected Places to Understand Risk.