Shifting Investor Attitudes
Fewer Americans are willing to take big chances with their money, and interest in cryptocurrency has dropped despite steady ownership levels, according to fresh data released by the FINRA Investor Education Foundation. The study surveyed 2,861 people across the United States who hold investment accounts outside their retirement plans. The numbers paint a picture of growing caution among investors.
Back in 2021, 12 percent of investors said they were okay with taking substantial risks. Now, that figure has decreased to just 8 percent. For individuals under 35, the decline is even more pronounced, falling from 24 percent to 15 percent.
However, a notable paradox exists: even as fewer people express a willingness to take significant risks, 34 percent still believe substantial risks are necessary to achieve their financial goals. This sentiment is particularly strong among younger investors, with 62 percent holding this view.
Jonathan Sokobin, Chief Economist at FINRA, commented, "The latest FINRA Foundation research on investors provides rich insights into how market conditions, technology, and generational shifts are changing the profile of investing and reshaping investor behaviors and attitudes."
He further added, "This research can serve as a roadmap and essential resource for policymakers, researchers, educators, firms, and financial professionals as they continue their efforts to help educate and protect investors."
Cryptocurrency and Market Entry Trends
Approximately 27 percent of investors own some form of digital currency, a figure that has remained consistent since 2021. However, the number of individuals considering new purchases of digital currency has declined, dropping from 33 percent to 26 percent.
The report also indicated a significant slowdown in new participants entering the investment market. Only 8 percent of investors reported starting to invest within the past two years, a substantial decrease from the 21 percent who began investing in the two years preceding the 2021 study.
The demographic composition of investors has also shifted. Young adults with non-retirement investments decreased from 26 percent to 21 percent. For men, the figure dropped from 43 percent to 40 percent. People of color experienced the most significant decline, falling from 36 percent to 29 percent, effectively erasing previous gains from the last survey.
Younger Investors and High-Risk Strategies
Younger investors continue to engage in higher-risk trading activities. For instance, 43 percent of individuals under 35 trade options, a stark contrast to the 10 percent of those aged 55 and above who do the same. Similarly, 22 percent of younger investors buy on margin, compared to only 4 percent of older investors.
Social media has become an influential source of investment information, with 29 percent of investors utilizing it for this purpose. YouTube is the most popular platform, used by 30 percent of all respondents and a significant 61 percent of those under 35.
Recommendations from social media influencers, often referred to as “finfluencers,” influence the decisions of 26 percent of investors overall. This percentage rises to 61 percent for individuals under 35 and 57 percent for those with less than two years of investing experience.
Meme stocks have gained traction with 13 percent of investors generally, though 29 percent of younger investors have purchased them.
Despite the rise of digital platforms, traditional methods remain prevalent for information gathering. Seventy-five percent of investors use research tools provided by their brokerage firms. Sixty-nine percent consult with financial professionals. Sixty-seven percent read business and finance articles, and 65 percent discuss investments with friends, family, or coworkers.
Concerns About Fraud and Investment Knowledge Gaps
Concerns about fraud have increased, with 37 percent of investors now worried about scams, up from 31 percent in 2021. Despite this rise in concern, the majority of investors, 89 percent, do not believe they have been targeted by a scam.
A notable knowledge gap persists among investors. On average, participants answered 5.3 out of 11 questions correctly on an investing quiz. Questions related to margin trading and short selling proved particularly challenging, with 55 percent and 54 percent of respondents answering them incorrectly, respectively. Alarmingly, 75 percent of individuals who actively engage in margin trading were unable to correctly answer the question about margin trading.

