Susie James, a retired small business owner from Wales, represents a common sentiment among Europeans who trust cash over stocks, influenced by past market crashes. This behavior has kept many shielded from volatility, especially recent global economic disturbances, but it also highlights their missed opportunities for long-term investment gains. On average, only a third of Europeans invest in stocks compared to over half in the U.S., with notable variations across the continent, leading to financial disparity and underinvestment in Europe relative to potential returns.
I'm old enough to have lived through two major crashes, said Ms. James, 67, recalling the market panic on Black Monday in 1987, when her father lost 10,000 British pounds (about $38,000 today), and the 2008 financial crisis.
This conservative approach has insulated many Europeans from the extreme market volatility of recent weeks as President Trump's tariffs have roiled the global economy. But it has also meant that many have missed out on substantial stock market gains over the long-term.
About 33 percent of European Union households invest in stocks and investment funds, compared with 51 percent in the United States, according to Bruegel, an economic research institute in Brussels.
Rates of investment in stocks, bonds and other traded funds are higher in Scandinavian countries and lower in Spain, France and Italy, three of the continent's biggest economies, where less than 30 percent of adults invest.
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