Black Americans’ lack of participation in the stock market likely to widen post-pandemic wealth gap 14 February 2022
Many Black Americans missed out on the hefty gains from the stock market due to historically low equity ownership.
Only 34% of Black American households owned equity investments as compared with 61% of white families, according to Federal Reserve Board’s most recent survey in 2019.
The primary way that Americans build wealth and invest is through retirement plans, and there have been enormous racial disparities in that area.
Thanks to the historic stock market rebound from pandemic lows, affluent 401(k)-holders and savvy investors in the U.S. enjoyed double-digit returns from stocks over the past two years. But not for the majority of Black Americans.
Only 34% of Black American households owned equity investments, as compared with 61% of white families, according to Federal Reserve Board’s most recent survey in 2019. The average value of stocks Black Americans owned amounted only to $14,400, nearly a quarter of what their white peers held, the data said.
Black Americans being left behind
Liquid assets and stock ownership among Black Americans significantly lag their white counterparts
Note: Averages are calculated among those who own each type of asset.
Source: Federal Reserve Board, 2019 Survey of Consumer Finances
“Because Black households are less likely to be invested in the stock market and on every level less likely to be engaged in the financial system, they not only entered the pandemic with large gaps, the likelihood is that we are going to see some of these gaps widen coming out of the pandemic,” said John Lettieri, the Economic Innovation Group’s president and CEO.
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Posted By: Dea. Ron Gray Sr.
Monday, February 21st 2022 at 6:03PM
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