Young Black Americans Increasingly Investing In Stock Market

From The Wall Street Journal, Personal Finance, "Black Investors Are the Biggest New Group of Stock Buyers: Mobile apps, social media and word-of-mouth are reshaping the makeup of the market" by Oyin Adedoyin and Sanaa Rowser:

Young Black Americans are among the fastest-growing segments of stock-market investors.

Nearly 40% of Black Americans owned stocks in 2022, up from just under a third in 2016, according to the most recent Federal Reserve data. During that same period, the share of white households with stocks grew to nearly two-thirds, up from 61%. This was all before the stock market’s 2023 rally.

This growth seems to be driven in part by younger investors, surveys suggest. They embraced the market in a retail-investing boom fueled by mobile apps, commission-free trading, participation in 401(k)s, crypto, meme stocks and social media, researchers said. Nearly 70% of Black respondents under 40 years old were investing, compared with roughly 60% of white investors in the same age group in 2022, according to a survey by Ariel Investments and Charles Schwab. [Emphasis and Survey weblink added.]