Interesting Investing Statistics You Should Be Aware Of
“Time in the market beats timing the market”. A saying known to every investor and probably the only thing most investors would agree on. As the investing statistics reveal, the differences between investors from different demographics are huge. What ones see as a risk, others see as an opportunity. They have different preferences and various methods of conducting research but share the common goal of making money.
Today’s article will provide you with the investment stats you need to know in 2023, relevant for both beginner and experienced investors. Let’s have a look.
Top 10 Investing Statistics and Facts
58% of Americans have invested some money in the stock market in 2022.
The median value of stocks owned by American families is $40,000.
60% of American men and 56% of American women own stocks.
86% of home buyers believe that buying a house is a good investment.
55% of Americans who are not yet retired have invested money in 401(k) or 403(b) retirement accounts.
16% of US adults have invested in cryptocurrency.
Only 10% of US investors say they already have invested in ESG funds.
Passive investing is the best way to maximize returns, according to 71% of US investors.
The average American investor holds on to his stock for 5.5 months before selling it.
Only 18% of Americans plan on investing more in 2022 than they did in 2021.
General Investing Facts and Statistics
The median value of stocks owned by American families is $40,000.
In addition, the median value of directly held stocks is $25,000, while it is $121,000 for directly held bonds. Moreover, the median retirement account of US households has $65,000 on it, and the median value of certificates of deposit in American families is $25,000. Lastly, US households have a median amount of $110,000 pooled in investment funds, $89,000 in business equities, and $160,000 in other residential real estates.
(Federal Reserve)
86% of home buyers believe that buying a house is a good investment.
The latest real estate statistics show that 43% of investors believe investing in real estate is better than investing in stocks, while older Millennials are the most likely to buy a house. Namely, one in every four, or exactly 25% of real estate buyers are between 32 and 41 years old.
Furthermore, 60% of home buyers are married couples and 31% have children under 18. Home buying stats also show that 15% of the houses that are sold are new, while 85% were previously owned. Finally, 87% of home buyers financed their purchase and 61% made down payments using their savings.
(NAR)
66% of Millennial investors own stocks.
According to the most recent Millennials investing statistics, stocks are the most popular investment type for investors of this generation. They are followed by mutual funds and crypto, owned by 47% and 39% of the Millennial investors. Furthermore, their top three favorite types of stocks are dividend stocks, owned by 59%, growth stocks, owned by 58%, and value stocks owned by 54% of the investors.
Additionally, the largest percentage of Millennial investors, or 41%, invest in the financial and information technology sectors, though high-tech technology with 39%, healthcare with 38%, and the energy sector with 36% are also popular choices.
(Fool)
40% of Gen Z investors use Robinhood at least once a month.
Gen Z investing statistics reveal that younger investors are more likely to rely on modern apps and sources of information, rather than traditional tools like Fidelity, which is used by only 22% of the investors from this generation. However, robo-advisors are not nearly as popular, as only 6% of the male and 4% of the female Gen Z investors say they use Ellevest. Interestingly, while 91% of them say they use social media to get information on investing, only 37% of them consider Facebook posts, and 39% consider Tik Tok videos, to be trustworthy sources of information.
(Fool)
16% of US adults have invested in cryptocurrency.
The latest online investing statistics still show a very small percentage of Americans who invest in crypto and unfortunately, 46% say their investment went worse than they initially expected. Additionally, 78% of the Americans who have invested in crypto say they did it to diversify their portfolio, 75% believed it is a good way to make money, and 54% did it because they thought it was easier to get into crypto than traditional trading. The stats further reveal that only 2% of Americans have bought an NFT. This percentage jumps to 6% for Americans under 30.
(Pew Research)
Only 10% of US investors say they already have invested in ESG funds.
In addition, socially responsible investing statistics show that less than half, or 48%, of American investors, are somewhat or very interested in sustainable investing. The lack of interest in ESG funds should not come as a surprise when 78% of US investors research the expected rate of return when they choose where to invest next. Moreover, 74% research the risk of potential losses, while only 41% research corporate governance policies, 38% research social values, and just 35% research the environmental impact of the companies they want to invest in.
(Gallup)
Passive investing is the best way to maximize returns, according to 71% of US investors.
The active vs passive investing statistics further reveal that 89% of Americans believe that spending a longer time in the market is more important than timing the market. As a result, only 1% of them say they trade stocks daily, while 4% trade at least once a week. The largest percentage, or 32% of investors, say they trade stocks a few times per year, 12% once every year, and 16% even less often than that.
(Gallup)
The average American investors keep their stocks for 5.5 months before selling them.
Even though the average length of time that investors hold their shares before trading them has been reducing for decades, the current investment trends show that holding times are now shrinking faster than ever. In comparison, the average time investors held their stocks at the end of 2019 was 8.5 months, while it was 14 months, 20 years prior, in 1999. The current average holding times are even shorter than the record-low average of six months, which took place right after the Great Recession in 2008.
(Reuters)
55% of Americans who are not yet retired have invested money in 401(k) or 403(b) retirement accounts.
Furthermore, the most recent statistics on investing for retirement show that 52% of US non-retirees also have savings outside of their retirement accounts, while 36% have invested money in IRA. Moreover, 22% have defined benefits pensions, 13% have other retirement savings, and 10% have real estate and business investments to help them retire.
As per personal finance statistics, 44% of consumers said they started taking bigger picture risks and one of their main habits became investing. Therefore, 40% of Americans believe their retirement savings to be on track, but unfortunately, the stats also show that 25% of US non-retirees have no retirement savings at all.
(Federal Reserve)
Only 18% of Americans planned on investing more in 2022 than they did in 2021.
According to the investment statistics from a recent survey, 56% of US investors intentionally avoided making any moves on the stock market in 2022 because of its current volatility. Additionally, another 62% say the current inflation rates are too extreme for them to take any action on the market.
However, stats also show that younger investors are looking at these circumstances as opportunities. Namely, 73% of Gen Z investors actively bought or sold stocks exactly because of the market’s current state, and 43% of them said that they will invest more in 2022 than in 2021.
(Bankrate)
Statistics About Investing in the Stock Market
58% of Americans have invested some money in the stock market in 2022.
Historical data shows that the share of American adults who invest in stocks, mutual funds, or retirement plans is on the rise since 2016 when the percentage was 52%. In 2017, it jumped to 54%, before it increased again to 55% in 2018. For the next two years, it remained unchanged and increased to 56% in 2021, before reaching 58% in 2022. It’s interesting to note that Approximately 8 out of 10 millionaires reached that status by investing in their company’s 401K plan.
(Gallup)
89% of US households with annual incomes of more than $100,000 own stocks.
According to the latest investing stats, people with higher earnings are considerably more likely to invest in the stock market than those with more modest earnings. In comparison to the 89% of high earners, only 25% of Americans with yearly incomes of less than $40,000 own stocks. Moreover, 61% of households with annual earnings of between $40,000 and $99,000 have invested money in the stock market.
(Gallup)
67% of Americans aged between 50 and 64 invest in the stock market.
The above age group is the likeliest to own stocks in the country, followed by Americans between 30 and 49, 62% of which have invested money in stocks. Furthermore, investor statistics reveal that 59% of Americans older than 65 are stock owners, while the percentage of Americans between 18 and 29 who invest in the stock market is the lowest among the age brackets, with 41%.
(Gallup)
79% of the postgraduates in the USA are stock owners.
The data on American investors indicates a correlation between education levels and the probability of owning stocks. Namely, people with higher education are more likely to own stocks, with postgraduates being the likeliest group to do so. In comparison, 73% of college graduates, 64% of people with some college education, and only 36% of those with up to high school education own stocks, according to the latest investment data.
(Gallup)
60% of American men and 56% of American women own stocks.
In addition to the fact that men are slightly more likely to be stock owners than women, the data also shows that Non-Hispanic White adults, with 64%, are more likely to own stocks than people of color, 46% of whom are stock owners. When it comes to political affiliations, 65% of Americans who identify as Republicans invest in the stock market, while the percentage of those who identify as Democrats and own stocks is slightly lower at 61%.
(Gallup)
Foreign Direct Investments Statistics
The USA invested $6.49 trillion worth of foreign direct investments in 2021.
The above figure indicates a $403.3 billion increase compared to the $6.09 trillion FDI the USA invested in 2020. USA’s increased investments in European countries are the major driver behind the growth of the FDI abroad for this year. On the other hand, the stats also show an increase in the investments received by the USA, and the total FDI in the country reached $4.98 trillion in 2021, $506.1 billion more than the $4.47 trillion in 2020.
(BEA)
3.98 trillion of the US direct investments were invested in Europe.
Foreign direct investments by country statistics reveal that four of the top five destinations that the USA is investing in are countries in Europe. The UK is in the number one spot, having received $1 trillion of America’s direct investments. The Netherlands received $885.3 billion, Luxembourg $715.6 billion, Ireland $556.6 billion, and $406.4 billion of the USA’s FDI went to Canada. By industry, 47.3% of the investments went to holding organizations, 15.6% to finance and insurance firms, and 14.1% to manufacturing companies.
(BEA)
Japanese MNEs invested $690.0 billion in the USA, making Japan the top US investor by country of the foreign parent.
US direct investment facts by country of the foreign parent further reveal that the Netherlands is the second biggest investor having invested $629.5 billion in the US in 2021. The other countries in the top five include Canada with $527.9 billion, the UK with $512.4 billion, and Germany with $403.6 billion.
Additionally, Japan remains the top US investor in the USA even when we look at data by country of the ultimate beneficiary owners with $721.0 billion, but Germany moves to the number two spot with $636.5 billion.
(BEA)
Investing Statistics FAQ
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Conclusion
In summary, stocks and real estate remain the go-to investments for investors of all generations, even though crypto and ESG funds are slowly picking up the pace. And while newer generations of investors do rely on more modern solutions to perfect their trading strategies, robo-advisors are not yet used as they probably should be. Finally, nine out of ten investors agree that time in the market is essential and seven out of ten believe passive investing is the best way to maximize profits.
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