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,â€ 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,â€ 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,â€ 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,â€ 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.â€