Stocks are booming, and most Black people are missing out, according to a new study

Despite a pandemic, stocks are soaring but Black people are missing out, according to a new study.

Black people are missing out on stocks

Those who own stocks are pulling further away from those who don’t.

Unfortunately, Black people and households are much more likely not to be in that group, according to newly released data by The Federal Reserve.

Statistics

According to the data, only 33.5% of Black households owned stocks in 2019, Among their white counterparts, the ownership rate is nearly 61%. Hispanic and other minority households also are less likely than white families to own stock.

Experts say one of the prime reasons is a longstanding preference by many Black investors for safer places to put their money — the legacy, some say, of decades of discrimination and fear. Also, many were never taught about stocks and what they were missing out on.

Black people have also often lacked  the opportunity to build wealth by buying stocks, keep it in the market and watch it grow over time.

But researchers say that even wealthier Black households are much less likely to own stocks than their white counterparts. That means they missed out on the roughly 260% returns for S&P 500 funds over the last decade and the resulting chance to see their wealth grow, according to the report.