Millennials -- the generation of workers under age 35 -- are the only working generation with time on their side. Time to wait out market crashes. Time to take the long view. Time to let compound interest work. 

And they're terrified of the stock market. 

When investing on their own, millennials currently have a lower allocation to stocks than their baby boomer parents, according to UBS. That holds true even for millennials with more than $100,000 to invest. 

I recently sat down with Patrick O'Shaughnessy -- one of the smartest investors I know, and author of new book Millennial Money: How Young Investors Can Build a Fortune

Here's what he had to say: 

 

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Contact Morgan Housel at mhousel@fool.com. The Motley Fool has a disclosure policy.