accounting for the steady growth in stock ownership between 1992 and 2001.
“There were five years [1995 to 1999] when the stock market was essentially giving you about 13% to 20% returns,” says Ed Fulbright, CEO and chairman of Fulbright Financial Consulting PA. “When you see people making money hand over fist, everybody wants to get in,” Fulbright adds.
Though many African Americans may be deterred from entering the highly volatile stock market now, many experts still encourage educated investing. “If your employment is stable, I think the best thing people can do is continue to invest in the stock market,” Fulbright says.
Since the interest rate on most savings account barely beat inflation, investing along with saving would mean a greater financial return.
“If you want to build wealth you have to diversity and accept risk,” says Hanna. “If you’re properly diversified you have the ups and downs but over the long run buying stocks is still best way to build wealth.”