There is drastically decrease in the number of investors in my country. What do you think?
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What do you think that most people don't make investments?
- Thread starter Stardom22
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In some cases, the income is very less, and just enough to pay expenses, there is no money for investing. In other cases, people are not financially literate so they do not invest or lead a lavish lifestyle which leaves them with less savings.
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The reason might be the following : no capital, no drive no guts, no inspiration and lacking know how. Others are waiting for the right timing.
A lot of times it stems from lack of money. investment needs money some a whole lot of money so money is one big factor.
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I believe there are actually so many reasons for this though. It could be that they are scared to invest much especially now that the economy is unstable. It's better to make use of what they have now rather than investing it and loosing it. For some they have simply not found what to invest in.
The first reason why people invest is the luck of investment money and financial abilities, and the second is that they do not know and trust investment plans. Those two things are the main reasons why people don't make investments.
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The reasons vary according to the financial capacity and capability of the person. Despite he's inspired but having no skills to prove guarantee a failed investment.
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Many individuals are unable to invest due to insufficient investment funds. This is often a main obstacle preventing people from investing, despite their desire to do so.
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Indeed, no fund, moon investment to happen. It will only be a dream but there is a solution and that is to save.
@Stardom22 If there is a decrease in investors, it means that previously investors in your country were high, this does not mean they do not have money/capital or do not have investment skills, but it is the result of influences such as the decline in the value of local fiat money against the USD, interest rates, inflation, etc. You will be able to easily see the rise and fall of the number of investors (stocks) in the average daily transaction value on the stock exchange.
There are many reasons. Lack of capital, not willing to take risk, lack of know-how, or they are waiting for the right time to invest.
That's because the rates of inflation that cause so many people to be financial constrained is very higher in the recent days.
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Most people tend to be very risk-averse because they have a hard time winning the money and they feel that it is like betting or throwing money away, at least that's what I think.
Some people don't make investments out of ignorance. And others, it is just due to lack of extra funds after basics to use and invest.
Poverty mindset can be a reason why someone doesn't make investments. They don't realize that money multiplies when you invest
