According to a new survey from Ally Invest, the online trading and automated investing arm of Ally Financial Inc., nearly two-thirds of survey respondents (65%) say they find investing in the stock market to be scary and/or intimidating, up from 61% in a similar survey during the same period last year. Fear is highest among Gen Z and millennial consumers: 69% for those ages 18-23 and 66% for those ages 24-37.
For decades, the federal government has found ways to prevent businesses from advertising products that were deemed bad for consumers. Restrictions on advertising impacted cigarette manufacturers, liquor producers and hedge funds. Few people will argue with the wisdom of limiting the promotion of cigarettes, but there are many who have argued to remove the limitations on hedge funds – so the rules have changed.
In the past few years, consumers have learned painful lessons about the need to save and invest money. But many consumers lack even basic knowledge about how to invest and what they might expect for returns. To find help, men and women of all ages are turning to new sources to gather information.
More consumers feel confident that the economy will improve before the end of 2010 and this new attitude will lead investors back into the market. What may be different this time is that investors plan to come into the market armed with more information about where they want to put their money. This trend means that financial marketers from banks to brokers have a chance to win new customers by using educational ad campaigns.