Young investors are taking a hit for their interest in unconventional assets

The younger someone is, the greater the case for taking on risky investments, writes Hamish McRae

The yo-yo price of bitcoin has made millions for some early investors, but recent months have seen a sharp reversal (Getty)

It has been a lousy start to the year for investors. We all know that. But anecdotal evidence suggests that it has been a particularly bad one for young investors, and that is troubling indeed.

Markets go up and go down, and these past three weeks have seen a vicious downswing in share prices in the US. Since US equities account for more than half the global total valuation, the ripples have spread everywhere. There are perfectly good reasons for gloom, including the prospect of higher interest rates in America (and everywhere else), and war in Ukraine. But what is notable is that different markets have fallen by quite different amounts.

The Nasdaq index of high-tech US enterprises is down approximately 12 per cent this year, the S&P100, which represents 100 of the largest US corporations, is down 8 per cent, while the Dow Jones, covering solid, longer-established companies, is down by 6 per cent.