*If you don’t see it, will you still believe it is possible?

What we’re talking about here is the stock market and its effect on wealth in the Black community. Simply put, in this article we’re going to be talking about asking Black folks to invest their money, energy, and time into stocks. This may seem like a wild swing in the dark but, believe us, this may be a less risky proposition than you might think.

Wealth is naturally an important objective in every Black household and the stock market should therefore be one of their considerations. Participation of the Black community has always been low in the stock market, and this is what contributes to the wide gap of wealth between White and Black households according to studies conducted in 2014.

The Stats

There are, however, quite a number of signs that point to the fact that change is imminent. According to a market research report from 2017, it was found that about 67% of the Black community that had an income of $50,000 had their money invested in stock mutual funds or some other stocks. This compares to the 60% of people who were invested in the stock market in 2010 and the 57% that was invested in 1998.

A Concept the Resonated With Many African Americans

The stock market is based on a concept that bodes well with most of the people in the Black community – business ownership. Historically, entrepreneurship has always held importance for the disenfranchised communities that were seeking greater access to sustainable incomes, services, and goods.

Becoming stock holders and resorting to business investments will be able to expand the opportunities of all the stakeholders in their quests for returns and profitability.

“If You Can’t Beat Them, Join Them.”

There is also no escape from the investment market if you plan to have paychecks for your retirement. Employer funded pensions are already on the decline and workers can already be seen relying on market-based investment or individual contributions such as employer-sponsored retirement accounts or individual retirement accounts. Examples of these are the 401 K, 403 B, or the 457 B retirement plans.

Taking all of this into consideration, the Black community should really consider the adage, “If you can’t beat them, join them.”

All the Black community needs to do is assess what they have, stay informed, and spread their risks. It is also important for the community to see that they aren’t taking plunges into the stock market alone. They can take classes, hire professional financial planners, or even join investment clubs.

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