More and more companies are making apps or sites to help people with no knowledge to enter this area, so I feel the numbers will rise. This site is a good example from it:
But that is completely focusing on trading, not investing. The average person doesn't have the knowledge or the necessary capital, no matter what apps they use, to provide for themselves by trading. All you need to do is open a brokerage account with your bank and buy and S&P 500 index fund and in the long run you will profit. That is in my opinion the most simple way to invest. And it works.
My two cents is many people have an inherent distrust of the capital markets. They don't understand it and they think it's all just one big scam. They think it's controlled by big powers and threes no way for the little guy to make a buck. They also think that it's a rigged system and they will lose all their money. Finally most people watch movies like "wolf of wall-street" and think all brokers/salespeople are just greasy con-artists.
Americans are nervous to invest in stocks because it really is not something that is taught to us. We have to go out on our own and learn about how to do it, and manypeople just do not have the time or will power. It is hard to findthe time to learn about new things when we are pressed already. Plus it can be scary to potentially lose money when many people live paycheck to paycheck anyhow.
I think A LOT of people are scared after what happened in 2008. I know my sister and her husband STILL are not keen on getting back into the stock market and they would have plenty of money to invest if they wanted to. For others, I think many are simply living paycheck to paycheck and don't have enough money to even think about saving much. A very sad testimony of our times. If we elect a Dem for 2017, expect it get even worse I suppose as there will be no economic growth which would help fuel wage increases.
Well it is a little of both. Their is definitely deceptive marketing going on when they advertise the monthly quotes. But from the business side of things, the failure rate on loans on things purchased must be huge. They do require you to prove you have a job, but work turnover is so high that within a few months a lot of their customers have probably already lost or switched jobs. Also street addresses don´t exist, you literally give vague directions to your house, but finally, the judicial system also does not really exist, as a business you would never be able to sue an individual over not paying a loan back. As much as people complain about the USA ( usually people who have never lived overseas), you really do appreciate some of the ´nanny´ stuff that the Gov´t does for us.. food, meat and restaurant inspections, truth in advertising laws and just a fairly complete judicial system. In any event, back to the topic. My personal opinion is that a good 50% of people just do not want to learn new stuff once they are adults. I also think that stat is even worse than you imagine if you take away people who ´passively´ invest such as 401ks. What percent of people in the US would know what a PE ratio is? I´d say less than 10%
I have traveled abroad extensively myself. I have also served in the military. I also vote, contribute to political campaigns, and pay a shit load of taxes. I'd say that I am entitled to complain as much as I want. Most people with any significant assets to invest who are successful at whatever they do - brain surgery, law, drilling for oil, whatever - don't have the time nor inclination to spend hours a week making sure their financial house is running at 100%. And the more money they have, the more help they generally need from professionals.
That is just the kind of crap overgeneralizations that keeps people out of the market, lies and overstatements like that. People have eyes, they can see what's going on in front of them. Regardless of what pundits or the news media might say.
The lack of education and a bifurcated economy are, in my opinion, the largest contributing factors in the low numbers of people investing in the markets. There are those who lack the income to track a portion off into investments. Others with sufficient income are often caught up in raising a family, buying a home and dreading paying for college. No time to work on an investment strategy, leaving decisions to the HR department.
That is made on purpose, the lack of education not only in the financial area, but also in health and food. The state wants to keep us ignorant, it's on their best interest to profit.
