Stock Market is America's Favorite Investment

The stock market is the most popular long-term investment option among U.S. adults, according to a new survey by the financial data company Bankrate, conducted January 17-19, 2025. Twenty-seven percent of respondents selected the stock market as their preferred choice for investing money they will not need for at least a decade. This may come as little surprise, given the strong performance of the S&P 500 stock index, which returned more than 20 percent in both 2023 and 2024. Real estate and cash investments were the next most popular options, favored by 24 percent and 21 percent of respondents, respectively.

Among those who preferred alternatives to the stock market, common reasons for deterrence included volatility and feeling intimidated. Notably, women reported feeling intimidated by the stock market at a higher rate (23 percent) than men (15 percent), contributing to the persistent investment gender gap. Research attributes this gap partly to women underrating their financial knowledge, as well as having less exposure to the topic through early life socialization. However, there are signs this is changing: a 2024 report from financial services company Fidelity found that more women - especially in Gen Z - are entering the investment space.

Still, JPMorgan research reveals that Gen Z men are leading the surge in retail investing. Since the pandemic, participation among 25-year-olds has risen from six percent in 2015 to 37 percent in 2024. This growth has largely been driven by Gen Z men, with the bank’s analysts suggesting that many spent time learning how to invest during the pandemic through social media. 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.

These trends are further supported by a 2025 World Economic Forum report which found that younger generations are engaging with the topic of personal investment earlier than previous cohorts. For example, 41 percent of Gen Z respondents started learning about investing in early adulthood or university, compared to just 16 percent of Baby Boomers at the same age. The WEF also notes that, alongside younger people and women, individuals from emerging markets are increasingly participating in capital markets. Factors fuelling this growth include technological innovation, such as tech-enabled guidance, and domestic market growth, citing for instance, how over 120 million people in India engaged with capital markets for the first time between 2019 and 2023.