You Are Not An Investor... But It's Important You THINK You Are...

The idea that most Americans are stock investors is often misunderstood. While more people own stocks, primarily through 401K accounts as traditional pensions fade, this shift means individuals now bear more market risk. The rise of easy-to-use trading apps like Robinhood has also increased stock ownership, though many users have low investment amounts and high-interest debt, making their "investing" more akin to gambling. Stock ownership is highly concentrated, with the wealthiest 10% of Americans owning 93% of all stocks. For most people, increasing their income is more effective for wealth building than trying to perfectly optimize their investments. Thinking you are an investor can lead to worse investment decisions, make people more accepting of policies that benefit the very rich, and turn shareholders into more loyal consumers for companies they own stock in. Despite these points, investing remains crucial for retirement planning and financial security.