The COVID-19 pandemic triggered a surge of new investors, with 21% of US investors in 2021 having joined markets within the past two years. These investors were younger, lower-income, and more likely to invest in risky assets like cryptocurrencies while often relying friends and family and social media for information. However, 2024 findings reveal a significant shift: new investor flow dropped dramatically to 8%, while young adult participation fell from 32% to 26%. Still, 2024 new investors continue exhibiting high-risk behaviors, including trading options and investing in crypto. Beyond a decreased flow of new investors, time series data suggests many pandemic investors may have exited the market, indicating the pandemic investor surge has also ebbed.

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