Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Retail investors perceive stocks, bonds to be more arcane than crypto - survey

Economy Aug 04, 2022 03:17PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A representations of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration

By Medha Singh

(Reuters) - Retail investors find well-established stocks and bond markets to be more arcane than the wild world of cryptocurrencies, a survey by the World Economic Forum (WEF) showed on Thursday.

The privately-funded WEF's survey, in collaboration with BNY Mellon (NYSE:BK) and Accenture (NYSE:ACN), showed that 29% of investors said they did not understand the nascent cryptocurrency market, whereas nearly 40% of investors noted that they didn't understand stocks or bonds.

The survey also revealed that 70% of retail investors were under 45 years of age.

"With global adoption and trading volumes of crypto rising substantially over the last few years, there has been a lot of buzz about it, which is likely influencing investors' product awareness," said Meagan Andrews, investing lead at WEF.

"Less coverage of more traditional products, like stocks and bonds, may also have the opposite effect on awareness."

The cryptocurrency market value ballooned to as much as $3 trillion last year, according to data platform CoinMarketCap.com, but it has lost nearly two-third of its value amid surging inflation and tightening financial conditions.

Crypto market's peak, however, was miniscule in comparison to the $124.4 trillion global equity market and the even bigger $126.9 trillion bond market in 2021, according to the Securities Industry and Financial Markets Association.

The survey comes as retail investors become a force to be reckoned with, after they banded together on social media forums last year to drive eye-watering rallies in GameStop (NYSE:GME) and squeezed bearish hedge funds.

A poll by Gallup published in May showed 58% of Americans said that they own stocks.

The WEF survey of more than 9,000 individuals across nine countries also revealed that a majority of investors were looking to build long-term wealth.

But, about 40% of those surveyed did not invest and said they did so because they didn't know how to invest or found investing too confusing.

Retail investors perceive stocks, bonds to be more arcane than crypto - survey
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email