In fact, 28 percent of U.S. adults in a sample of 1,007 respondents told Bankrate that they would prefer to invest their excess funds in the stock market for a decade or longer. This response is up 8 percent from a survey the company issued last year but is down 4 percent from 2018.
“Despite falling by more than one-third in just over a month at the outset of the pandemic, more Americans point to the stock market as the best place to invest money long-term,” explained Bankrate Chief Financial Analyst Greg McBride. “The swift rebounds this spring and following a 20 percent decline at the end of 2018 have convinced more investors of the market’s long-term merits.”
Not so surprisingly, the stock market was most popular among high earners who make $75,000 per year or more. Thirty-nine percent of this well-off group looked at the stock market favorably. For low earners who make less than $30,000 per year, the stock market wasn’t necessarily the top choice but it was still enough to make 22 percent of these respondents view it as a long-term investment strategy.
Likewise, 37 percent of respondents with a college degree think the stock market is a good investment option while respondents with a high school diploma think the same.
Men were more likely to view the stock market favorably at 40 percent versus women at 29 percent.
Similarly, Baby Boomers between the ages of 56 and 74 were most likely to have “aggressive” investment plans for the stock market. Millennials between the ages of 24 and 39 were the second age demographic to have decade-long investment plans followed by Gen Xers between the ages of 40 and 55.
Of those who don’t intend to put money into the stock market long-term, more than half – 54 percent – of respondents told Bankrate the coronavirus pandemic largely shaped their decision.
Additionally, 42 percent said their investment strategy has been swayed throughout the pandemic. A little more than one-quarter of Americans intend to invest “less aggressively” in the coming decade after COVID-19 while 57 percent don’t intend to change their investment level at all.