Why Many African Americans Don’t Invest in the Stock Market Pt.3
Continuing to pull back the layers of my original topic, “Why Many African Americans Don’t Invest in the Stock Market”, I have put together a group of resources that I feel, not only provides the evidence to support my question, but also addresses and explores that question further, offering some practical steps that African Americans can take as it relates to investing in general, and the importance of wealth building.
Channel 7 The Denver Channel: Black Americans not investing in the stock market, and it’s costing them.
I find of particular interest what the research data shows, and what some of the reasons are, why African Americans don’t invest in the stock market.
Why are African Americans less likely to talk about investing, specifically in the home? They have other pressing issues facing them like, “struggle, food, safety, health, education, other problems they have”, says Yosef Bonaparte, Associate Professor at UC Denver.
Black EOE Journal: More Black Investors Should Look To Stock Market To Grow Their Wealth
“The stock market features a concept that resonates with many African Americans: business ownership.”
I included this quote because it raises the topic of Business Ownership, and I couldn’t agree more. Being in business for myself, is a desire, that I have had, ever since I was old enough to understand what it meant. And once I began working as an employee, and had a few jobs, the desire turned into a full blown forest fire. It’s been my experience when listening to some African American parents, communicating the importance of education to their children, the conversation usually goes like this: Go to school and get good grades, get a good education, so you can get into college, get more good grades, so you can graduate and get a____________? You fill in the blank. Good Job! I have almost never heard that journey end like this, “so you can graduate and Own a Company.”
“One of the key ways to close the gap is by focusing on what you can control, and that is investing in yourself, and investing for yourself, by investing in the stock market.”
I thought the above quote emphasized a crucial concept, “Invest in yourself!”, or as the famous real estate guru, Robert Kiyosaki, author of the book, Rich Dad, Poor Dad, would say, “Pay Yourself First!”
BusinessWire: New Ariel-Schwab Black Investor Survey Shows Black Americans Continue to Trail Their White Counterparts in Building Wealth
You can feel the emotion in the following quote by Mellody Hobson, co-CEO and President of Ariel Investments.
“Black Americans are already behind the eight ball, and it is disheartening to see that at current savings and investing rates, the wealth gap will continue to expand, endangering our futures and leaving our families exposed.”
All the results of the Ariel-Schwab Black Investor Survey, provide a vivid picture of the current state of wealth building in the African American community. But not all is hopeless.
Bright Spots
So as not to paint a picture of financial doom and gloom amongst African Americans, I’ve included a selection of bright spots, articles that highlight significant strides and inspiring stories.
Morning Brew: Black Investors Trade Their Way Through the Pandemic
With the creation of FinTech apps, like Robinhood, access to the stock market by African Americans is on the rise now more than ever. “The barriers to access the stock market are coming down, and Black Americans are taking advantage”, says Neal Freyman,
Managing Editor of Morning Brew.
Though African Americans still trail behind their white counterparts, there have been significant strides, especial among younger African Americans.
Ally Bank: African Americans Who Broke Barriers on Wall Street
This article highlights those African Americans who blazed a trail down Wall Street, as the title and the following quote state.
“a small group of individuals with perseverance and determination found a way to break into the elite club of investing, forging a path for generations of African Americans and other minorities to follow and expand.”
CNBC: Actor Hill Harper launches The Black Wall Street platform aimed at empowering investors of color More examples like this? Yes please! When people of influence, in this case, a celebrity like Hill Harper, not only recognizes the problems, but also does something to address those problems, it’s encouraging. See his platform, The Black Wall Street, named after the original Black Wall Street from the early 1900’s.
“Black Wall Street & Greenwood District”, is an empowering, yet tragic bloody stain on our nation’s history. Empowering, because it demonstrates what African Americans have done, are doing, and can do. Tragic, because it ended with what is now known as the Tulsa Race Massacre. Over 2 days, an entire flourishing African American neighborhood of homes and businesses destroyed, and many of the residents murdered, at the hands of a violent white mob.
BBC: Chris Gardner: The homeless man who became a multi-millionaire investor
I chose this article because of its inspiration. It is the best rags to riches, homeless on the street, to Wall Street, stories. Remember the Will Smith movie, “The Pursuit of Happyness”? It’s a true story about an African American named Chris Gardner, who went from being homeless, with his young son, to founding his own brokerage company, Gardner Rich & Co in 1987. His net worth, $70 million.
Hopefully you will find these resources informative, enlightening, inspiring and sobering.
Until next post.
