The Wealthiest 10% of Americans Own a Record 89% of all U.S. stocks

The wealthiest 10% of Americans own the most stocks. They are richer than the rest. The people in the top 1% got more money from stocks and mutual funds during the Covid-19 pandemic.

The bottom 90% also got some money from those stocks and funds. The share of stocks in America, which are owned by the top 10%, has reached a new record high. The bottom 90% of Americans now own about 11% of stocks, down from 12%.

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Since the fall in 2020, the stock market has gone up. It is now nearly double what it was before and has been up by 40% since January 2020. It also caused inequality to happen. The top 1% of people have more money than ever. They have 32% of the wealth. They got 70% of their wealth from stocks in one year and a half.

The top 1% own a lot of stocks; the rest of us own very few. (Steven Rosenthal)

There are more new people investing in stocks. They come from different places. For example, Robinhood has a lot of new investors, and they have over 22 million accounts. Some of the new investors are young, and this is their first time with stocks.

The Wealthiest 10% of Americans Own a Record 89% of all U.S. stocks

Rosenthal says that while new investors may be coming, they are not as wealthy as those who have more money invested. When the market goes up, those with less money will see smaller gains than those with more money.
Many younger investors also bought their homes at higher prices. Bigger investors have been around for a long time and made more money from buying their homes.

Many of the people who invest these days have a different strategy. They buy and sell stocks quickly, with leverage, in hopes of making quick money. Some investors do very well with this strategy, but others might not win as much as someone who just buys and holds onto stocks for a long time.

Between January 2020 and June 2021, the top 10% of people saw their stocks rise in value by 43%. The bottom 90% only rose at a slower rate of 33%. They might make up more of the trading activity, but that is different. They don’t own the money, and they don’t have any wealth.

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