The FINRA Investor Education Foundation published investor-survey findings from its National Financial Capability Study, highlighting a sharp deceleration in new retail investor entry, declining comfort with substantial portfolio risk, and greater reliance on social media and “finfluencers”, particularly among investors under 35. Among 2,861 respondents with non-retirement investment accounts, 8% reported starting to invest within the last two years, down from 21% in the two years preceding the 2021 wave. While the overall share of U.S. adults with non-retirement investments was broadly unchanged versus 2021, reported ownership fell among young adults (21% vs. 26%), men (40% vs. 43%), and persons of color (29% vs. 36%). Willingness to take substantial risk declined to 8% (from 12%), including among under-35s (15% vs. 24%), even as 34% said they need to take big risks to reach financial goals (62% under 35). Younger investors reported higher engagement in higher-risk practices such as options trading (43% under 35 vs. 10% age 55+) and margin purchases (22% vs. 4%); 29% rely on social media for information, YouTube was used by 30% overall and 61% of under-35s, and 26% use influencer recommendations (61% under 35; 57% with under two years’ experience). The report also noted 13% bought meme stocks or similar viral investments (29% under 35), cryptocurrency ownership was unchanged at 27% but fewer investors were considering crypto (26% vs. 33%), fraud concern rose to 37% (from 31%), and investing knowledge remained weak with an average quiz score of 5.3 out of 11 and widespread misunderstanding of margin and short selling.

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