Making the right investment decisions could lead you to incredible financial freedom!
Whether you’re looking to invest or are a regular in the market, it’s vital to stay on top of the game.
Don’t worry. We’ve got your back.
Let’s take a look at the 24 investment statistics that you need to know in 2022.
1. Active vs. Passive Funds
90% of actively managed funds underperformed passive funds.
Investing in a fund that’ll actively try and outperform the market by purchasing securities is risky,
Because you’re playing against someone who knows what they’re doing, which, 90% of the time, won’t work out for the investor!
2. Management Fees
The average person who invests in the stock market pays a management fee of 0.75%.
If that number is compounded over 30 years, it will result in about 20% less money when retirement hits.
3. Minimal Stock Falls
40% of stocks fell at least 70% since 1980.
A lot of people are scared to invest because they fear stock plummeting.
Investing isn’t a guaranteed win, but the odds are in your favour, with only 40% of stocks falling by at least 70%.
4. Discussing Investments
Parents, at least 61% of them, prefer discussing investments with their advisers, instead of with their adult children.
Investing is a personal decision, but having someone who understands the market can help you make life-changing decisions.
5. Rising Stock
Stocks have risen 1,100-fold over the past 70 years, skyrocketing to new heights.
Investing in stocks, especially over a long period, can be an incredibly lucrative business.
6. The G20
The 20-member nations of the G20 account for 86% of the global GDP1.
Investing in stocks from this group can give you a diversified portfolio with minimal risk!
7. Personal Savings Rate
In January 2020, the personal savings rate was only 7.6%.
As difficult as it is, one of the most important things that we can do is save money for retirement. Investing in stocks, bonds, and other securities will help increase this number!
8. Monthly Personal Savings
In January 2021, the amount of monthly personal savings was $3.30 trillion, which is lower than the $40 trillion it was in 2018. Investing now will help increase this number!
9. COVID-19 Affects Millenial Saving
26% of millennials have had to withdraw from their emergency fund/savings accounts, as a result of the COVID-19 pandemic.
Investing in stocks with a low-risk profile could help them diversify their portfolios while also providing liquidity if they need it, which 26% of millennials did!
10. COVID-19 Also Affects Gen X Savings
In addition, around 19% of Gen Xers had to withdraw from their emergency fund/savings accounts.
This statistic is enough to show the current world economic situation.
Many people are struggling with their day-to-day financial situations, as COVID-19 shows no signs of slowing down.
11. The Boomers Are in a Better Situation
Unlike the younger generations, only 10% of Boomers had to withdraw from their emergency fund/savings accounts because of COVID-19.
12. Gen X Turning to Retirement Savings
About 9% of Gen Xers have had to borrow against their retirement savings to get through COVID-19.
Another statistic that shows the current world economic situation.
Many people are struggling and have had to think now, instead of holding that cash for the future.
13. New York Stock Exchange
As of January 2021, the largest global stock operator is the New York Stock Exchange (NYSE).
This statistic displays how much of an influence this institution has on the world’s economy.
14. The Impact of COVID-19
In Q1 of 2020, there was a sharp drop by 20.7% and reached its pre-pandemic levels.
This statistic displays the drop in global stocks2.
At first, there was a sharp decrease of 20.70%, and then it reached its pre-COVID-19 levels of stock prices, which is a much better statistic than the previous one.
15. Increase In Capitalisation
An increase of 19.7% in capitalisation was registered compared to the end of 2019.
This statistic displays a much better world economic situation.
This increase is a fantastic statistic because it shows how the global economy has been improving since COVID-19 and will continue to improve in the future.
16. Non-Wrap Mutual Funds
One of the most interesting statistics is that 75% of financial advisers recommend non-wrap mutual funds as an investment vehicle.
This displays how much better these investments are than other risky ones, which means more people will invest more safely and have more money saved for retirement or emergencies.
17. The Best Mutual Fund Group in the World
As of September 2020, Black Rock funds have assets worth $7084 trillion and continue to grow with every passing day, making them the best mutual fund group across the globe.
Investing in these types of funds will lead you into a safer future for your retirement account or emergency savings accounts!
18. Market Capitalisation
There are 19 stock exchanges in the world with a market capitalisation of more than $1000 trillion.
This statistic displays how much money is being transferred between countries and institutions every day for their investments and how much the world’s economy continues to grow.
19. Stock Market Declines
Stock market declines of 5% to 10% generally require a month’s recovery time.
A statistic that displays how much time it takes for stocks to recover after a decline.
Generally, a stock market decline of up to 5% needs only one month before the prices are back where they started.
20. Stock Market Corrections
On average, stock market corrections happen once every 2 years.
This is an important statistic to consider when investing your money in stocks for retirement or emergency savings accounts.
21. The Information Technology Sector Leads
The information technology sector has a 27.60% market share and is the leading institution in worldwide economic influence, followed by finance with 23%.
22. Automated Stock Market
More than 80% of the stock market is now automated.
This shows the importance of technology in the growth of the global stock market. It’s vital to keep up to date with the latest automated systems.
23. Share Repurchases
Share repurchases reach a new low for the first quarter of 2020 as they return to $200 billion.
This statistic displays how much money companies are putting back into their stocks and that there is still hope in this period of economic recession!
24. Average S&P 500 Returns
Historically, the average S&P 500 returns for each year of a presidential term go from 5.2% in the first year.
This is a clear indication of how stocks have a history of being unpredictable.
No one can foresee with certainty what might happen, so it’s important to always be cautious when investing!
Investment statistics are important to know, and understanding them will help you make more informed decisions.
Whether it’s investing for the long-term or in a short-term investment strategy, knowing how much risk is involved can be helpful when making your decision.
Finally, having the knowledge to predict potential outcomes could happen with every type of investment is also crucial so that you don’t find yourself regretting any past decisions later on down the road.