Despite war, recession, and a bear market, African Americans continued to invest sin the stock market last year, according got the 2002 Ariel Schwab Black Investor Survey.
The survey, released this past June, compared 500 blacks with household incomes of at least $50,000 with the same number of Caucasians. The survey found that 74% of high-income blacks today own stocks or stock funds, which is 30% higher than the 1998 figure of 57%.
The recession and events of Sept. 11 did not cause many to bail out of the market. Only 6% of African Americans &7% of Caucasians) said they liquidated investments as a result of these occurrences.
These findings aren’t surprising, according to Carla Arnold Foster, vice president of Specialized Marketing for Charles Schwab. “I believe that those who have taken a measured approach are in it for the long-term and understand what that’s about,” Foster says. “African Americans did not rush in to the market, and I don’t think they’re going to rush out.”
Hugh Price, president of the National Urban League, credits much of the rise in black investors to the efforts of black leaders and their organizations. Price stresses the importance of continued vigilance and planning by black investors. “When you thing about economic development, it’s about getting good jobs, buying homes, startitng businesses, and accumulating wealth,” he says. “We also have to pound home the message that it [investing] has to be a part of the strategy that each family pursues in wealth creation.