According to Bankrate’s Money Pulse survey, less than half of American adults have money in stocks. The exact number, 48%, included adults who invested in pension funds, 401(k) retirement plans, IRAs, mutual funds, ETFs, or those owning individual stocks. The result is a surprisingly low number and seems to be an alarming financial trend.
To compare, about 61% of adults have at least a cup of coffee daily. This shows a drastic difference - more Americans have a clear financial interest in coffee than in stocks. Why is this?
Stock ownership peaked in 2007, just before the financial crisis, so Americans may still be worried about the economy. And according to Bankrate, the biggest problem is that people don’t have the money to invest. Median household income is about the same as it was in 1995, and many households just don’t feel comfortable enough to invest in stocks. Will this change?
Hopefully, as the economy gets better, more people will feel comfortable to be a little financially risky.