Tuesday, April 17, 2018

Stocks Account for Bigger Share of Wealth

Stocks are a growing share of the wealth of middle-aged Americans, according to an analysis of the Survey of Consumer Finances by the Federal Reserve Bank of St. Louis.

In 2016, stocks accounted for 11 percent of the net worth of householders aged 41 to 60, more than double the 4 percent of 1989. Vehicles also grew in importance, with their share of the household wealth of the middle-aged rising from 14 to 19 percent. In contrast, the share of net worth accounted for by the principal residence of middle-aged householders fell from 46 to 37 percent during those years.

Despite the rising importance of stocks to the middle-aged, stock ownership is increasingly concentrated among the wealthy. In 2016, fully 78 percent of the stock market wealth of middle-aged Americans was owned by the wealthiest 10 percent of households—a record high.

Source: Federal Reserve Bank of St Louis, How Has Stock Ownership Trended in the Past Few Decades?

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