The outbreak of the COVID-19 pandemic in March 2020 brought a myriad of challenges worldwide, impacting various aspects of life, including the global economy. Amidst the backdrop of economic uncertainty and market turbulence stemming from the onset of the pandemic, there was a remarkable upswing observed in retail capital market investing, marked notably by increased participation from women, and Black and Latinx communities. This sudden surge represented a significant shift in the demographics of investors—young, Black, and Latinx—and signaled a growing interest and engagement in financial markets by historically underrepresented groups.

We partnered with The Prudential Foundation to understand the key factors that motivated new investors’ decisions to begin investing, and whether they now perceive investing as a viable wealth-building opportunity. This report provides insights into the experiences, motivations, and behaviors of new investors, with secondary data and comparisons to long-term investors.

Read more in our report A Time Like No Other: Lessons from the Investor Spike of 2020-2022.

This report is made possible through the support of The Prudential Foundation.