Black and Latino Americans are increasingly interested in investing despite market volatility related to the COVID-19 pandemic, but they’re also more pessimistic about the stock market than white investors, according to the findings of two new research briefs by the Financial Industry Regulatory Authority Investor Education Foundation and National Opinion Research Center at the University of Chicago.
The research also found that low levels of investment knowledge underscored the need for more investment education opportunities among Americans, especially among Black and Latino Americans, according to the FINRA Foundation.
Overall, one in five Americans surveyed indicated an increased interest in investing.
Researchers found widespread awareness of stock market volatility among all investors and non-investors, but survey respondents reported making few transactions as the market disruption unfolded in early 2020.
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Although four in 10 respondents reported a decrease in their willingness to take financial risk as a result of the market volatility, a comparison of their risk tolerance assessed before and after the pandemic started showed very little change, according to the findings.
Two of every five respondents (40%) reported now is a good time to invest, while only 24% viewed it as a bad time to invest, according to The Impact of Pandemic-Related Volatility on Stock Market Expectations and Participation.
That finding was mainly driven by households with taxable investment accounts, 50% of whom believe now is a good time to invest, compared with 41% of retirement-only investors and 24% of non-investors, according to the report.