As long as Black People avoid the stock market, the wealth/racial divided will continue to get larger....middle income White households net worth is 20xs middle income Black households... Because of FEAR...of a thriving market... Please read an exert from an article is by Dorothy Brown, a professor of tax law at Emory University Law School, actually about how home ownership is NOT contributing to Black wealth. forbes/sites/forbesleadershipforum/2012/12/10/how-home-ownership-keeps-blacks-poorer-than-whites/ The recent crash and subsequent rebounding of the market—”fiscal cliff” jitters notwithstanding—show how meaningful this is: White median net worth is down by only 16%, while black median net worth is down by 50%. This is because the stock market has significantly rebounded and compensated for whites’ losses in home equity, but blacks, without comparable stock investments, have not benefited. This leads to my final point: While many whites are comfortable investing in the stock market, most blacks are not. White middle-class families are more than twice as likely to own stock as black middle-class families. Why? Blacks’ wages tend to be lower, so we have less disposable income, but even when studies control for income, they find that blacks are less likely to invest in the stock market. The reasons are complex. Blacks in the middle class are often called on by family members for financial assistance, leaving less income for investing. We’re less likely to have grown up in homes where investing in the stock market was commonplace. And it can’t help that the securities industry is overwhelmingly white. Recent data show that fewer than 6% of Wall Street professionals are black. To be sure, investing in the stock market is a risky endeavor even when you know what you’re doing. However, the rewards are great. Investing in stocks not only builds wealth by paying dividends, but all income from stocks is taxed at a much lower rate than income from wages: 15% versus up to 35%. This problem is not eliminated as black income rises.
Posted on: Mon, 26 Jan 2015 06:23:05 +0000
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