Home Markets Retail Investors Perceive Stocks and Bonds to Be Darker Than Crypto Survey

Retail Investors Perceive Stocks and Bonds to Be Darker Than Crypto Survey

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Retail Investors Perceive Stocks and Bonds to Be Darker Than Crypto Survey

A representation of cryptocurrencies in this illustration taken January 24, 2022. REUTERS/Dado Ruvic/Illustration

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Aug 4 (Reuters) – Retail investors are finding well-established stock and bond markets more mysterious than the wild world of cryptocurrencies, a survey by the World Economic Forum (WEF) showed on Thursday.

The privately-funded WEF survey, in conjunction 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 45 years old.

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“With global adoption and trading volumes of cryptocurrencies increasing significantly over the past few years, there has been a lot of buzz about it, which likely influences investor awareness of the products,” said said Meagan Andrews, Head of Investments at WEF.

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

The cryptocurrency’s market value soared to $3 trillion last year, according to data platform CoinMarketCap.com, but lost almost two-thirds of its value amid a surge in inflation and tighter financial conditions.

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

The survey comes as retail investors are becoming a force to be reckoned with, after banding together on social media forums last year to hold eye-popping rallies in GameStop. (GME.N) and squeezed bearish hedge funds.

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

The WEF’s survey of more than 9,000 people in nine countries also revealed that a majority of investors were looking to build long-term wealth.

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

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Reporting by Medha Singh in Bengaluru; edited by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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