When Investment Becomes Religion: How Household Investors Persist with Risky Investments Amid Uncertainty

• In Event: 50404 - Risk and Uncertainty in the New Economy, from Labor to Finance

Abstract

In recent years, there has been a surge in household investors’ participation in financial markets, particularly among younger demographics. Many of them are attracted to risky financial products—including cryptocurrencies, meme stocks, and tech stocks—despite their volatility and high risk of loss. What drives these investors to maintain high-risk-taking attitudes, despite market uncertainty and significant potential losses? Based on 20 months of digital ethnography and 41 interviews with South Korean Tesla retail shareholders, I examine mechanisms that can lead household investors to persist with high-risk investments. I find that some investors within online investment communities turn to meaning-making strategies commonly associated with religious groups to cope with uncertainty and loss and to sustain continued high-risk investment. These strategies include (1) relying on communities of faith, (2) searching for charismatic authority, and (3) waiting for the promised future. This research contributes to understanding the underexplored religious elements within modern investment life that may further accelerate the financialization of everyday life.

Author

• Kyungmo Chun, University of Texas-Austin