Retail investors perceive stocks and bonds more obscure than the cryptocurrency survey

Aug 4 (Reuters) – According to a World Economic Forum (WEF) survey, retail investors find established equity and bond markets to be more mysterious than the wild world of cryptocurrencies.

The privately funded WEF survey, in partnership with BNY Mellon and Accenture, showed that 29% of investors said they did not understand the nascent cryptocurrency market, while nearly 40% of investors indicated that they did not include stocks or bonds.

The survey also revealed that 70% of retail investors were under the age of 45.

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“With global adoption and cryptocurrency trading volumes increasing significantly in recent years, there has been a lot of hype about it, which likely affects investor awareness of the products,” said Meagan Andrews, Head of Investments at WEF.

“Even lower coverage of more traditional products, such as stocks and bonds, can have the opposite effect on awareness.”

The cryptocurrency’s market value jumped to $ 3 trillion last year, according to data platform CoinMarketCap.com, but it has lost nearly two-thirds of its value due to surging inflation and tighter financial conditions. .

The peak of the cryptocurrency market, however, was minimal compared to the global stock market of $ 124.4 trillion and the even larger bond market of $ 126.9 trillion in 2021, according to the Securities Industry and Financial Markets Association.

The poll comes as retail investors are emerging as a force to be reckoned with, having come together on social media forums last year to trigger tantalizing rallies on GameStop (GME.N) and squeeze hedge funds to the downside.

A Gallup poll released in May showed that 58% of Americans said they own shares.

The WEF’s survey of over 9,000 people across nine countries also revealed that most investors were looking to build long-term wealth.

However, around 40% of respondents did not invest and said they did because they did not know how to invest or found the investment too confusing.

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Medha Singh reported in Bengaluru; edited by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.

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