The latest personal finance survey shows that more than a quarter of Americans turn to the stock market for long-term investments.
Bankrate conducted their study based on a sample of 1,007 respondents, 28% of which prefer to invest their excess funds in the stock market. This year, the stock market is America’s favourite way to invest, outrunning real estate by 2%. To most investors’ surprise, despite the overall hype around Bitcoin, this and other cryptocurrencies only scored 4% of all responses.
“Despite falling by more than one-third in just over a month at the outset of the pandemic, more Americans point to the stock market as the best place to invest money long-term,” explained Greg McBride, Bankrate Chief Financial Analyst. “The swift rebounds this spring and following a 20 percent decline at the end of 2018 have convinced more investors of the market’s long-term merits.”
Looking closely at the data obtained, 39% of the high earning group, who make $75,000 per year or more, voted in favour of the stock market. On the other side of the salary scale, for those who make less than $30,000 per annum, the stock market may not have been the most obvious choice, but it was still enough to make 22% as a decade-long investment strategy.
37% of respondents with a college degree share the positive outlook on the stock market with respondents who possess a high school diploma, being a good investment option.
In terms of gender, men are more likely to consider investing in the stock market (40%) as opposed to 29% of women.
Generation-wise, Baby Boomers (56-74 y.o.), according to the research, are more likely to have an “aggressive” approach to their stock market investment plans. Millennials (24-39 y.o.) are the second in place to have decade-long investment plans, followed by respondents in the Gen X group, aged between 40 and 55.
More than half of those respondents, who don’t consider putting money into the stock market long-term reported to Bankrate that their decision had been largely influenced by the coronavirus pandemic.
Just a little over a quarter of Americans plan to invest “less aggressively” in the next 10 years after COVID-19, while 57% express no interest in changing their investment level at all.