The latest findings from the FINRA Foundation’s National Financial Capability Study point to a decisive shift in how U.S. investors approach the markets.
The research suggests that the surge of post-pandemic participation has transitioned into a period of recalibration, where attitudes, behaviours and expectations are being reshaped by economic volatility and evolving information sources, claims Red Oak.
New entrants are arriving at a slower pace, risk appetite is narrowing, and the influence of social platforms continues to expand, particularly among younger market participants. Meanwhile, views on speculative or complex assets are becoming more nuanced, with interest ebbing and flowing as caution competes with curiosity.
Red Oak, whose platform spans compliant content distribution, supervision and communications surveillance, has seen similar patterns unfold among its client base. Trends identified in FINRA’s research mirror themes observed in real time across Red Oak’s ecosystem, illustrating how investor sentiment is shifting and how those changes cascade into advisor workflows and content demands.
One of the most significant takeaways from FINRA’s study is the reduction in investor risk appetite. Only 8% of investors reported being willing to take substantial risks in 2024, down from 12% in 2021. The contraction is even more pronounced among those under 35, where willingness declined from 24% to 15%.
This reflects a broader backdrop of economic uncertainty shaped by tariff debates, policy turbulence and a government shutdown, all of which introduced heightened market volatility. Red Oak’s compliant content distribution tool, 4U, reflected this sentiment shift: searches related to volatility, bear markets and risk management more than doubled, while “tariffs” emerged as the most frequently searched term. The trend points to a growing need for financial firms to supply timely and compliant educational resources that help advisors address investor anxieties while promoting informed decision-making.
FINRA’s research also reveals diverging views on cryptocurrency. Retail investor interest in crypto fell from 33% in 2021 to 26% in 2024, aligning with today’s more cautious mindset. However, advisor behaviour on Red Oak’s 4U platform diverged sharply, with crypto-related searches rising more than 200% year-over-year. Advisors appear increasingly focused on understanding the asset class, even as investors step back. This gap highlights the need for clear, risk-aligned materials that can support advisors as regulations evolve and client questions become more sophisticated. Asset managers who can offer grounded and educational content in this space will likely build deeper trust with advisors navigating such a rapidly developing category.
Social media’s role in shaping investor knowledge is another of FINRA’s defining insights. According to the study, 29% of investors now rely on social platforms for investment information, with 61% of those under 35 favouring YouTube. Recommendations from influencers are influential for 26% of investors overall and 61% of younger investors. Red Oak’s supervision tools reflect this pivot toward personality-driven, narrative-rich content. Influencers are moving away from high-volume posting and leaning into polished stories that foreground who they are rather than what they recommend, often prompting private or semi-private conversations. Yet this comes with a paradox: relatable voices sometimes lack expertise, high production value does not guarantee high-quality advice, and FOMO remains a strong motivator, particularly for first-time or inexperienced investors. Despite the online noise, the timeless principle still stands: start early, invest consistently, and allow time in the market to compound returns.
The overarching message from FINRA’s latest study is that investor behaviour is evolving faster than many firms can adapt. For financial institutions, the challenge is not simply producing more content; it is delivering the right guidance with agility and precision. As expectations shift and the demand for compliant, timely advisor support grows, firms need technology that ensures consistency and accelerates delivery.
Red Oak positions itself within this need, offering a unified system that connects content creation, review, distribution and supervision. Designed by compliance specialists, the platform aims to streamline workflows, reduce operational friction and support compliant AUM growth during a period of rapid behavioural change.
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