Every so often, various websites run articles reporting that certain demographics are investing in the stock market or refusing to take that important financial leap. Sometimes the articles produce an abundance of vital data that looks at how millennials are refraining from investing or how seniors are ramping up their investments prior to or during retirement.
The latest article attempts to purport, whether directly or indirectly, that the stock market is discriminating against those who are not white, male and college educated. CNNMoney’s Heather Long published an article Thursday entitled “Who’s getting rich off the stock market?”
It discusses how the stock market has been booming in recent years and much of those gains have been allocated to white, affluent, college-educated males. The author also alluded to the fact that less than half (49 percent) of Americans have money in stocks, including retirement funds and investors who purchase specific stocks.
“Part of the reason there is so much discussion about income inequality is there is a group of people who participated in the stock market over a period where it nearly tripled, and there’s another group of people that didn’t,” said Mark Grinblatt, a professor of finance at UCLA’s Anderson School of Management, in an interview with the news publication.
Does this have anything to do with income inequality? One group of Americans took the risk to invest, while another did not.
Anyway, in other words, according to Long, “The stock market has been especially kind to Caucasians and college graduates.”
On one hand, there are wealthy Americans who have enough money in their savings to invest. On the other hand, there are workers who have savings but choose not to invest these available funds for fear of losing it in another crash. There are others who are barely getting by.
Research has consistently shown that a growing number of Americans are either putting their money into a low-interest savings account or spending it – many have conceded that they have entirely given up the concept of a retirement.
Dan Greenshields, CEO of Capitol One ShareBuilder, argued that “it’s much easier for the average American to buy a smartphone that commit to a retirement plan.”
This is the problem, though: people choosing to consume in the present as opposed to thinking about the future. Rather than taking the time to consider various investment options, consumers are too busy spending their entire paychecks on frivolous items, like iPhones, the latest televisions and McMansions, or creating budgets to find enough funds to put aside $25 in a basic mutual fund.
Annamaria Lusardi, a professor at George Washington University, recommended to the news outlet that there needs to be heightened personal finance education beginning in elementary and secondary school so people know how to save, create a budget and spend their money wisely.
Of course, this is an impossible feat considering that government schools consistently spend money like drunken sailors and have yet to improve test scores.
The notion that the stock market purposely discriminates against blacks, poor people and individuals without a college degree is pretty asinine. Anyone can go to their local financial institution and open up a mutual fund, establish a GIC, purchase precious metals or create a brokerage account. It just takes some due diligence, dedication and a small amount of money.
Money isn’t xenophobic, racist or anti-religious. Money is a means to acquire goods and services, that is all.
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