Americans Pour More Money Into Stocks Than Ever Before, But Top 10% Hold 90% Of Wealth

Zinger Key Points
  • United States household stock allocations hit an all-time high in the first quarter of 2024 at over 41%.
  • The richest Americans hold the vast majority of the wealth in the U.S. market.

U.S. households’ stock allocations hit an all-time high in 2024’s first quarter as technology stocks have propelled the SPDR S&P 500 ETF Trust SPY and the NASDAQ Invesco QQQ ETF QQQ to all-time highs.

The Data: According to data from the Federal Reserve Bank of St. Louis, household financial asset allocations in the corporate equities market hit an all-time high in the first quarter of 2024.

Households had 41.59% of their financial assets invested in corporate equities, higher than other relative peaks during the 2021 market boom (41.46%) and the 2000-2001 dot-com bubble (38.38%).

Equities allocation bottomed out in the 1970s and 1980s following four recessions between 1970 and 1990.

The number hit a 21st-century low during the 2008 financial crisis, at 18.86%. Households hold more than twice the amount of stocks today than in 2008.

Why it Matters: Since the 2008 financial crisis, the Nasdaq has rallied over 1,700% while the S&P 500 is up by over 700%.

The data indicates that households benefit more from the U.S. market’s rally than they would have at any other point. Notably, the top 10% of Americans hold over 90% of stock market wealth. However, online brokerages like Robinhood have helped democratize investing to some extent among retail investors.

Higher household stock allocations indicate a shift towards riskier assets and away from safer investments like bonds or cash. This may lead to increased volatility in the stock market as investors react to changing market conditions.

Also Read:

Gold Prices Set To Climb To $3,000 On Fed Rate Cuts, Geopolitical Tensions, Bank of America Says

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: Broad U.S. Equity ETFsEcon #sTop StoriesMarketsExpert IdeasS&P 500stock allocationsStories That MatterTechnology Stocks
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!