A recent survey from Credit Donkey highlights that many Americans are still afraid of investing in the stock market. In fact, according to the survey, 31% of U.S. males and 43% of U.S. females are afraid of investing in equities.
This survey of over 1,200 Americans by Credit Donkey reveals that 46% of respondents are afraid of death and 37% of respondents are afraid of investing in the stock market.
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Details on the Americans and the stock market survey
Gender played a major role in beliefs about the stock market. Males typically had more faith in the stock market, while females have a stronger belief in the banking system. Just over 78% of males compared to 70% of females believe in the stock market, and 69% of males compared to 73% of females believe in the banking system.
Almost 69% of males plan to invest in stocks in the future compared to 57% of females (investing in stocks “seems like a good way to lose money,” one female respondent wrote).
Around 76% of the survey respondents said investing in mutual funds is a good idea, and 54% are likely to invest in mutual funds in the future (59% of males compared to 50% of females).
Three-quarters of the respondents replied investing in bonds is a good idea, and 51% are likely to invest in bonds in the future (56% of males, 47% of females).
More than 76% say real estate is a good investment, and 56% are likely to invest in real estate in the future. Moreover, 49% said real estate is a better investment than stocks (52% of females , 46% of males).
Finally, 31% of survey respondents replied that investing in foreign currency is a good idea (38% of males, 25% of females).
Stock market investing perceived as risky and rigged
Of note, 73% of respondents said they feed that investing in the stock market is like gambling, while 31% think the stock market is rigged.
Many of the respondents who are afraid of investing in stocks say their concerns are related to the high risks. “I’m afraid of losing the money,” one respondent noted. “Plus, I don’t have time to constantly watch the market.”
Skepticism about the stock market was also prevalent. A number of respondents said they were wary of putting their trust in brokers, corporations, and the financial system in general. “Putting my money in the hands of someone else is scary,” commented one respondent.