As a result of the changes in the world’s financial market, investment has emerged as the sole viable means of achieving financial independence. According to financial experts, individuals should set aside a specific proportion of their income each month for investment.
The statistics presented in this article illustrate the most important investing patterns in the current financial sector. Beginning with worldwide investment data, we will limit our focus to the latest developments in the United States in several areas such as cryptocurrencies, banking, real estate, the stock market, cannabis stocks, and venture capital. The last section of the paper will look at the investing habits of various demographic groups.
Take a look at what follows!
Catchy Statistics on Investing Money
- The US real estate market for homes is projected to grow by 4.1% from 2020 to 2021. (Source: Mansion Global)
- JPMorgan has a 9% global share of the revenue market making it the leading investor in banking revenue. (Source: CNBC)
- 70% of Americans wish they had invested more in 2019. (Source: CNBC)
- In 1989 22% of US adults below 35 years owned stock compared to 41% in 2016. (Source: QZ)
- In 2020, there were more than 9,000 mutual funds managing assets worth $23.9 trillion of which 43% was owned by American households. (Source: Statista)
- Investment companies managed about 23% of the financial assets of American families in 2020. (Source: Statista)
- The New York Stock Exchange was worth $28.5 trillion by June 2018, making it the largest stock exchange globally. (Source: Investopedia)
- As of May 2021, Warren Buffett was the most successful global stock investor with a net worth of about $108.7 billion. (Source: Forbes)
Cryptocurrency Investment Statistics
Since the development of blockchain technology in 2008 and the first Bitcoin transaction in 2009, the technology has advanced significantly. By 2021, cryptocurrencies will have risen to prominence in virtually every sector of commerce. As a result of their increasing popularity, cryptocurrencies have emerged as viable investment instruments. Read on to learn about the bitcoin investing trends that will be prevalent in 2021.
1. In 2017, the initial coin offering (ICO) of B2B cryptocurrency companies was approximately $400 million while B2D companies commanded $1.2 billion.
(Source: Tomasz Tunguz)
Because blockchain is a technical breakthrough, the disparity in distribution between B2B and B2D indicates the ecosystem’s early development. Developers were initially more interested in it than their commercial colleagues, which was understandable in its early stages.
2. 41% of C-level leaders at technology companies plan to implement blockchain by 2022
(Source: Computer World)
According to a study conducted by KPMG, 48 percent of top IT firms believe that blockchain would have an impact on their company processes and enhance corporate productivity. Less than half of those surveyed said they planned to use blockchain technology into their operations.
3. The blockchain market is expected to grow to $39.7 billion by 2025 from $3.0 billion in 2020.
(Source: Markets and markets)
Between 2020 and 2025, this increase represents an incredible compound annual growth rate (CAGR) of 67.3 percent. Among the factors driving this expansion will be the desire to streamline company operations and connect supply chain management tools with blockchain technology.
4. About 41, 800 people who purchased cryptocurrencies have invested at least 100 USD.
(Source: SaaS Scout)
People who have $100 or more to invest in cryptocurrencies. Forbes points out that a $100 investment in Ripple made in January 2017 would have generated a net income of $35,159 by the end of the year, which is the equal of a 35,159 percent profit!
5. By May 2021, about 46 million Americans had invested in Bitcoin
The Bitcoin investment rate in the United States reached 17 percent by May 2021, up from 6.2 percent in 2019. The bulk of investors are between the ages of 25 and 34, accounting for 47.95 percent of all investors.
Stock Market Investments in the US Statistics
The statistics below reflect American stock market investment patterns.
6. In 2021, the US stock markets accounted for close to 55.9% of the world stock markets.
The stock market in the United States accounts for more than half of the global stock market, followed by Japan and China, respectively. The New York Stock Exchange (NYSE) and the Nasdaq Stock Market (NASDAQ) are the world’s two biggest stock exchanges.
7. 55% of the US adults made stock market investments in 2020.
In 2007, stock market investments reached a high of 65 percent of total assets. From 2018 to 2020, stock investments in the United States have stayed steady at 55 percent of total assets.
8. 55% of Americans had invested in stock by 2020.
A small majority of Americans hold shares in the company they work for. Pew Research Center conducted a survey that showed that the majority of American families that own stock are those who make $100,000 or more, with 88 percent owning stock, compared to just 19 percent of those earning less than $35,000 who own stock.
9. 92% of high-income earners owned stock in 2019 compared to 56% middle-income earners.
(Source: US News)
Those with greater earnings are more likely to invest in stocks than those with medium and lower levels of income. Families from the highest income stratum hold 44 percent of the stock, with 12 percent coming from the middle class and 5 percent coming from the lowest income strata following closely. In 2019, 94 percent of individuals with a net worth in the top 25 percent of the income distribution held stock, while just 21 percent of those with a net worth in the lowest 25 percent of the income distribution owned stock.
10. 43% of the stock value in 2019 was owned by families that had household heads who are 65 years and above.
(Source: US News)
Stock ownership rises when a person gets older as well. When comparing individuals between the ages of 65 and 74, the median portfolio was $109,000, while the median portfolio for those aged 75 and above was $84,000. This is due to the fact that stock builds over time and is called upon in subsequent years.
11. The rate of stock ownership in families where the head was between 45 and 54 years was 58% compared to 47% of those above 75 years and 48% of those below 35 years.
(Source: US News)
The pace at which individuals make stock investments is determined by their age. In comparison to those who have just begun working and those who are towards the end of their working lives, those who are at the peak of their working lives have higher rates of stock ownership.
12. Experts recommend that average investors should have between 20 and 30 stocks in their portfolio.
(Source: Business Insider)
Stock investors should diversify their holdings in order to prevent suffering significant losses if a single stock plummets in value. Investing in more than thirty different companies may not provide many additional advantages over and beyond the benefits of greater diversity.
Legal Cannabis Stock
Cannabis stock was popular by 2019 as more states started to legalize cannabis. Statistics in this section reveal the cannabis stock market trends to note in 2021.
13. In 2020, the global legal cannabis market will earn $19.37 billion compared to the projected revenue worth 80.6 billion by 2027.
(Source: Research and Markets)
Arcview Market Research and BDS Analytics anticipated a significant increase in cannabis expenditure in their respective forecasts. The recreational use of cannabis will account for 67 percent of the total expenditure, with medicinal marijuana accounting for 33 percent of the total expenditure.
14. Harvest Health & Recreation Inc. had a 198% revenue growth from $116.8 million in 2019 to $231.5 million in 2020.
(Source: Street Insider)
Harvest is a cannabis business based in Arizona with 40 retail locations throughout the United States. The company’s sales goal for 2021 is $380 million. It is a possible stock investment candidate since its stock price target for the next 12 months is $6.99 per share, representing a 95.25 percent gain.
15. Curaleaf Holdings, Inc reported a 161% revenue growth from 2019 to 2020.
(Source: Street Insider)
This company is the biggest supplier of cannabis-infused consumer goods in the United States. A pro forma revenue of $767.1 million was announced, with managed revenue of $653 million expected in 2020. Market Beat analysts believe that the stock price objective for CURLF is $22.50 a share, which is a 50 percent increase over the stock’s current price of $14.50. This is one of the cannabis stocks to keep an eye on in the near future.
16. The annual revenue for Green Thumb in 2020 was $556.6 million
(Source: Street Insider)
According to Tip Ranks, the average 12-month price goal for GTBIF stock is $48.35 per share, with the highest price target being $48.35. This would represent a 54.37 percent increase above the current levels of employment.
Investment Banking Statistics
Investment banking refers to financial services that a bank’s division or financial firm provides to corporations, governments, or people with a high net worth in order for them to raise money for their businesses. The data in this area are geared for those who are interested in investing in investment banks.
17. JPMorgan bank generated $8.5 billion in investment banking revenue in 2020.
Investment banking revenue was the most profitable segment of the bank’s business in 2020, accounting for 9 percent of total worldwide revenue. It was followed by Bank of America and Wells Fargo.
18. By April 2021, Goldman Sachs generated 9.3% of global revenues compared to 9.2% by JP Morgan.
By April 2021, the two firms were the world’s most important investment banks. Morgan Stanley and Citibank were among the other financial institutions in this category. Goldman Sachs expects to earn about 8.5 billion USD in revenue in 2020.
19. In 2021, the US Market investment banking and securities dealing were $151.7 billion.
(Source: IBIS World)
This market is expected to expand at a pace of 2.8 percent in 2021 and 5.1 percent between 2016 and 2021, according to the projections. It is the 14th biggest industry in the Finance and Insurance sector in terms of market size, and the 76th largest industry in the United States.
20. By 2020 the investment banking revenue increased at an annualized rate of 4.6% to $147.5 billion.
(Source: IBIS World)
The Investment Banking and Securities Dealing sector has seen steady growth over the past five years, with projections for further growth through 2020. Revenue in this sector is generated via conventional investment banking services (such as securities underwriting and corporate consulting services) as well as trading and other financial services.
Real Estate Investment Statistics
Read the statistics in this section to understand the real estate investment trends in the US in 2021.
21. New home sales increased by 43.2% in 2020.
The mood among homebuilders hit its highest point in the past 35 years this year. People’s desire to relocate to low-tax suburbs with low-interest rates and low-interest rates has contributed to the current housing boom in the United States of America. The price of homes increased by 2.17 percent in the fourth quarter of 2020, compared to a 2.29 percent rise in inflation adjusted prices.
22. A 43.2% year over year increase in new homes sold was witnessed in 2020.
Approximately 1,011,000 units of new housing were sold annually by August 2020, according to the United States Census Bureau (US Census Bureau, August 2020). In August 2020, 33 percent of purchasers were first-time buyers, according to the National Association of Realtors. This was a 1% drop from the same month the previous year, but a 2% rise over the same month in 2019.
The number of homes for sale in April 2021 fell by 53 percent over the previous year, compared to a 52 percent fall in March of the same year.
There was a small decrease in the number of houses that were actively for sale compared to the number of homes that were listed in March. This implies that the number of houses listed for sale in April 2021 has decreased by 554000 properties compared to the number of homes posted for sale at the same time last year.
23. Homes that were newly listed for sale increased by 32.6% on a year over year basis compared to the oncoming of Covid-19 in 2020.
Although the number of new listings rose in 2021 when compared to 2020, they were still down by 25.5 percent when compared to the number of new listings between 2017 and 2019.
24. On average, the cost of buying a home increased by 17.2% from 2020 compared to 15.6 percent in March.
In April 2021, the median cost of buying a home reached a new all-time high of $375,000.
25. The homeownership rate will decline from 65% in 2020 to 62% in 2040.
The decline in homeownership will increase tenancy.
26. Between 2020 and 2040 tenancy growth is projected to more than two times the pace of homeownership growth.
Between 2020 and 2040, there will be 9.3 million additional households living in rental housing, representing a 21 percent rise in the number of new renter families. Based on this data, we can infer that the rental investment industry in the United States is thriving right now.
Investment Patterns among Different US Demographics
This section will analyze investment trends among different groups of people in the US.
27. 78% of those who invest using apps like Robinhood are below 35 years.
(Source: Fast Company)
The average age of those who buy shares via apps is between 28 and 41 years old. Traditional portfolios are used by the elder population to invest in order to guarantee financial stability after retirement. Those who utilize applications like Robinhood, on the other hand, have the goal of increasing their savings while also developing brand connections. Approximately two-thirds of people between the ages of 28 and 34 prefer to support businesses that make a good contribution to society.
28. 66% of investors aged 18 to 29 years and 65% of the ones between 30 and 39 years find stock market investment scary compared to 58% of those between 40 and 54 years and 57% of those who are 55 years and above.
More people aged between 18 and 39 years found stock investing intimidating than those aged 40 years and above.
29. 20% of millennials invest money for retirement in stable investments such as bonds, market funds, or cash compared to 15% of each of the older generations.
Millenials are more likely than previous generations to want to put their retirement funds into safe investments. 52 percent of individuals between the ages of 21 and 36 prefer to save money in cash.
30. 53% of the silent generation have taxable investment accounts compared to 39% of the boomers, 29% of the Gen Xers, and 22% of millennials.
(Source: Liberated Stock Trader)
The proportion of individuals in the United States who have taxable accounts rises as they become older. When it comes to taxable investment accounts, more over half of the silent generation has them, whereas less than a quarter of the Millenial age has any such accounts.
31. 4.68% of millennials have invested in Cryptocurrencies, compared to 2.77% of Gen X and 1.58% of the baby boomers.
(Source: SaaS Scout)
Cryptocurrency investment is more popular to the millennials than the Gen Xers and the Boomers.
32. 41% of the US citizens below 35 years owned stock in 2016, compared to 22% in 1989.
Despite the fact that the percentage of young people who own stocks is still in the minority, there has been a steady rise in recent years. Those who begin investing early in life are more likely than those who begin later in life to achieve financial independence later in life.
33. 52% of women confidently manage their investments, compared to 68% of men.
(Source: The Motley Fool)
According to a study conducted by Merrill Lynch and Age Wave, women have low trust in their abilities to make investments. According to various studies, the percentage of women who believe they are better investors than men is just 9 percent.
There are a variety of factors that influence people’s decisions to invest. Some people invest in order to achieve financial independence, while others invest in order to have financial stability in the future. When it comes to investing money, individuals have a wide range of choices from which to select. Markets to consider investing in include cryptocurrencies, stock markets, and real estate, among other things.
Investing in cryptocurrencies is not popular with the majority of the population, but it is a potentially lucrative financial opportunity. It is clear from the data presented in this article that those who make investments in cryptocurrencies may see positive returns in the future.
Investing in the stock market has long been a popular way of accumulating wealth, and it continues to be a promising financial opportunity. Despite the fact that more states are legalizing cannabis for medicinal and recreational purposes, the growing Cannabis stock is exhibiting indications of growth.
Another method of increasing one’s wealth is via real estate investment. The latest real estate investment trends indicate that investing in rental properties will be very lucrative in the foreseeable future. This is due to the fact that a large number of families are anticipated to reside in rental properties in the future.
The emergence of Covid-19 had a significant impact on the investment environment. The pharmaceutical stock market has benefited as a result of this development. The real estate market has also been impacted by this.
Due to the fact that they contain unexpected facts and statistics, money investment forecasts will never be completely accurate. As a result, in order to make good investing choices, investors must keep themselves up to date with current events. We hope that, despite the fact that statistics and numbers are always changing, the data and information presented in this article have provided you with a helpful foundation on the investment environment in the past, present, and future.
Q: What is investing?
Answer: Investing is the process of purchasing financial goods, which are referred to as investments, with the intention of reselling them at a greater price than the original purchase price. It is a method through which people may enhance the quantity of money that they have in their possession. Stocks, bonds, annuities, and mutual funds are all types of investments that may be purchased via an investing account, as can be seen below.
Q: What is the difference between investing and saving?
Affirmative: Saving is the act of placing money in a secure location like as a bank, whereas investing is the act of purchasing goods and placing money in a designated investment account. The difference between investing and saving is that investing allows you to increase your money quickly and fight inflation, while saving gives you with little chance to grow your money and may even prevent you from growing your money at all. Investing is intended for short-term objectives, while saving is intended for long-term objectives.
Q: How safe is it to invest in crypto?
Answer: Cryptocurrency is a new entry in the financial sector, and no one knows if it will succeed or fail in the long run. Cryptocurrency is a high-risk investment, and as a result, you should only invest money that you can afford to lose. It is also critical to establish investment boundaries in order to prevent investing more money than you can afford to lose.
Q: What are the best safe investments in the US?
According to Forbes, there are eight secure investments that provide reduced risk and more peace of mind. High-Yield Savings Accounts, Certificates of Deposit, gold, U.S. Treasury Bonds, Series I Savings Bonds, corporate bonds, and real estate are some of the investment options available. Treasury bonds issued by the United States are regarded to be the safest form of investment.
Q: What is the average percentage return on the stock market?
According to the Standard & Poor’s 500 Index, which serves as a benchmark for yearly stock market returns, the average annual return on stock market investment has been about 10% throughout nearly the entire twentieth century.