93% of U.S. households' stock market wealth is held by the top 10%

93% of U.S. households' stock market wealth is held by the top 10%, per Axios.

The wealthiest individuals in the United States currently possess an unprecedented share of the stock market, with the top 10% holding a record 93% of US equities, as per data from the Federal Reserve.

A larger segment of the American population is engaging in the stock market, reaching a record 58% of households owning stocks in 2023, according to the Fed's Survey of Consumer Finances.

However, stock ownership remains heavily concentrated among the affluent, as the bottom 50% of Americans owned merely 1% of all stocks and mutual fund shares in the third quarter, according to central bank data.

Despite a surge in retail trading during the pandemic, driven by remote work and government stimulus checks, ownership patterns haven't shifted significantly away from the wealthiest Americans. Some experts suggest that many retail traders exited the market during the challenging bear market of 2022, unable to withstand substantial losses.

Traditionally, stock market upswings have disproportionately benefited the already wealthy, given that the wealthiest households in the US primarily have their assets tied to equities, while most middle-class families have their assets linked to housing, according to a 2020 study.

In the third quarter, households in the bottom 50% collectively held $4.8 trillion in real estate assets but only $0.3 trillion in stocks, according to Fed data. In contrast, the top 1% held over $16 trillion in stocks and slightly more than $6 trillion in real estate assets.

Over the past decade, stocks have delivered substantial returns, particularly during a period of ultra-low interest rates, with the S&P 500 surging by 155%. The benchmark index gained 24% in the last year alone, fueled by easing inflation and investor expectations of Fed rate cuts in 2024.

Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.