According to a Federal Reserve study of consumer finances, the number of US households with direct stock ownership increased by 6% between 2019 and 2022.
JPMorgan Wealth Management head of self-directed investing Andrea Finan joins Wealth! to give insight into the best tips for DIY investors and how they can navigate the investing world.
For beginners, Finan offers, “I would find the experts … Go to credentialized places to get information and learn. I really strive for people to become curious in investing and learn and use the tools… Tap into the Analyst Ratings. Tap into CIB research pieces [from J.P. Morgan research] that might be great for you. There’s also lots of screeners and different kind of news articles that you can read to get smart about the risks you’re taking. “
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Nicholas Jacobino
Video Transcript
A rising number of Americans directly own stocks about 21% of US households owning equities.
And that’s up 6% from 2019, according to the Federal Reserve Study of Consumer Finances.
And to discuss best practises for do it yourself investors.
Andrea Finnan, who is the JP.
Morgan wealth management head of self directed investing, is here.
Thanks so much for taking the time here with us today.
Thanks for having me.
OK, so where is kind of starting point number one for the D I wires of their own portfolio who are saying I want to be a little bit more active in my own strategy, sir, I think it’s important for our D I wires to understand where they’re at in their financial life, right?
How much do they have to invest and what’s right for them?
Right.
So getting started early is a really important tip, but I think acknowledging where the industry has evolved, right interest rates have risen over the past few years, and so people who were investing in both equities and some options activity really need to think about the full continuum of asset classes right all the way from cash and FDIC insurance all the way through, um, to fixed income bonds, money market funds, ETF S, you know, and mutual funds.
And I think now we’re landing at a place where people really need to think about where value is in equities and really build a portfolio around that.
So say, after you’ve defined your goals, you say All right now I’m ready to get started.
I know what my time horizon is.
I know what the reality of how much I can invest is where do you get started from there?
Yeah, I think there’s a tonne of great tools.
Um, I would find the experts right.
Go to credentials, places to get information and learn I. I really strive for people to become curious in investing and learn and use the tools.
We have a great, um, value prop within our JP.
Morgan experience that allows you to explore ideas and think about what could be next tap into the analysts ratings tap into, um, CIB research pieces.
That might be great for you.
Um, there’s also lots of screeners and different kind of news articles that you can read to get smart about the risk you’re taking.
You know, it’s interesting when, uh, you were saying stay curious.
It naturally popped into my head that curiosity finds community as well and and vice versa.
In that, you know, there are more forums that people tap into now where they may not feel like they have a financial advisor to lean into and they go to perhaps social media.
How do you strike a good balance between saying, OK, I’ve got this professional person that I know is, you know, going through their own charting on a day in day out basis.
And it has some know how in managing several different accounts versus the community where you’re discussing and tossing around ideas.
Um, how do you kind of strike a good balance there?
Yeah, I think it’s a good question.
You know, they is many sources where you can get information and ideas.
The next place you need to take that, though, is validating those ideas right.
What criteria makes that company that index actually make money or lose money and be aware and comfortable with that?
And so use the tools that are available, but use all of those destinations for inputs, but not really the golden source for where you where you transact.
There have been several moments this year that can really kind of point to and say, OK, that changed how I might invest whether that is, um, one of their favourite names at Chipotle, for instance, seeing a stock split.
Or maybe it’s a a theme that’s taken off.
What are some of the ways to stay grounded even when you do have major events like that happening either in single names that you enjoy or themes that have really caught your attention to?
Yeah, I think it is really just looking in and staying, uh, keeping the pulse on your portfolio and the ideas you have.
There’s great tools and self directed, like watch list like alerts that might draw you back in when you may be paying attention to something else in life, right?
And so it’s your money.
Take the time to care about what, where you’re putting it at and use the tools that are available to you to help do that.
All right, I have too many alerts to fire off on my phone, Um, and a lot of investments that I haven’t made yet just continuing to keep an eye on for right now.
Thank you so much.
Andrew Finnan, who is the JP.
Morgan Wealth management head of self directed investing.
Appreciate the time.
Thank you.
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