Stock Market - Americans' Favorite Investment

The stock market is the most popular long-term investment option among American adults, according to a survey conducted by the financial data company Bankrate, cited by Statista.

Conducted between January 17-19, 2025, the survey shows that 27% of respondents chose the stock market as their preferred option for investing money that they will not need for at least a decade. This is not surprising, given the solid performance of the S&P 500, which returned more than 20% in both 2023 and 2024. Real estate and cash investments were the next most popular options, favored by 24% and 21% of respondents, respectively, according to the source cited. Among those who preferred alternatives to the stock market, common reasons cited included its volatility and feelings of intimidation. Women in particular reported feeling intimidated by the stock market at a higher rate (23%) than men (15%), contributing to the persistent gender gap in investing. Research attributes this gap in part to women's underestimation of financial literacy, as well as lower exposure to the subject through early socialization. There are signs that this is changing, however: A 2024 report by financial services firm Fidelity found that more women - particularly Generation Z - are entering the investment space.

But JPMorgan research shows that Gen Z men (those born between the mid-to-late 1990s and the early 2010s) are leading the growth in retail investing. Since the start of the pandemic, participation among 25-year-olds has jumped from 6% in 2015 to 37% in 2024. That growth has been driven largely by Gen Z men, with the bank's analysts suggesting that many of them have spent time learning how to invest through social media during the pandemic. JPMorgan also notes that financial education will be important for these new investors, especially when it comes to understanding taxes, market volatility, and potential losses.

• WEF: Younger Generations Are Learning About Personal Investment Earlier Than Previous Generations

These trends are further supported by a 2025 World Economic Forum report, which found that younger generations are getting involved with personal investment earlier than previous generations. For example, 41% of Gen Z respondents began learning about investing in early adulthood or at university, compared to just 16% of Baby Boomers at the same age. The Economic Forum also notes that, along with young people and women, people in emerging markets are increasingly participating in capital markets. Factors fueling this growth include technological innovation, such as tech-enabled mentoring, and domestic market growth, citing, for example, how over 120 million people in India interacted with capital markets for the first time between 2019 and 2023.