This paper investigates whether individuals' experiences with macroeconomic outcomes, particularly low stock and bond returns, have long-term effects on their risk attitudes. Using data from the Survey of Consumer Finances from 1964 to 2004, the authors find that individuals who experienced low stock returns throughout their lives are less willing to take financial risks, participate less in the stock market, and invest a lower fraction of their liquid assets in stocks. Similarly, those who experienced low bond returns are less likely to own bonds. The effects are more pronounced for more recent return experiences but still significant for early-life experiences. These findings suggest that individual investors' willingness to bear financial risk is influenced by their personal experiences with macroeconomic history, either through endogenous preferences or learning processes. The results have implications for understanding stock-market participation rates and aggregate stock-price dynamics.This paper investigates whether individuals' experiences with macroeconomic outcomes, particularly low stock and bond returns, have long-term effects on their risk attitudes. Using data from the Survey of Consumer Finances from 1964 to 2004, the authors find that individuals who experienced low stock returns throughout their lives are less willing to take financial risks, participate less in the stock market, and invest a lower fraction of their liquid assets in stocks. Similarly, those who experienced low bond returns are less likely to own bonds. The effects are more pronounced for more recent return experiences but still significant for early-life experiences. These findings suggest that individual investors' willingness to bear financial risk is influenced by their personal experiences with macroeconomic history, either through endogenous preferences or learning processes. The results have implications for understanding stock-market participation rates and aggregate stock-price dynamics.