An interesting article on who owns stocks in America from Mauldin Economics – worth reading. Here is an excerpt:
“A big slice of the US stock market isn’t American at all. Foreigners own about 35% of US stocks by value—and their ownership grew considerably over the last few decades…About half of US households have zero exposure to the stock market: no stocks, no mutual funds, no 401(k), no IRA, nothing…According to research by New York University economist Edward Wolff, some 84% of the stocks owned by Americans belong to the wealthiest 10% of households…Subtract that 10%, and subtract the 50% who own no stocks, the remaining 40% of Americans split about 15% of the stock market. For many, their investment is negligible—maybe a few hundred dollars in an old 401(k). Others have a big part of their net worth tied up in stocks. Maybe you’re in that group…But a solid majority of the American population feels no direct impact from stock market performance.”
Speaking of which, it was 35 years ago that Trading Places came out. Time to watch it again for old time’s sake.