The Demographics of the Viral Stock Frenzy

How many Americans bought GameStop or other viral stock during the speculative trading frenzy in January? According to a Yahoo Finance-Harris Poll, an astonishing 28 percent of Americans participated. 

Though GameStop was the poster child of the frenzy, it was not the most popular stock purchase. The number-one spot belonged to AMC Entertainment. Among those who purchased viral stock in January, 35 percent purchased AMC, 33 percent bought GameStop, and 23 percent BlackBerry. The 53 percent majority of those who bought viral stock invested $250 or less. 

The demographics of the players are what you might suspect. Men were much more likely than women to have purchased viral stocks in January—40 percent of men did so versus 16 percent of women. Younger adults were more likely to participate than older Americans. Forty percent of 18-to-44-year-olds bought viral stock in January compared with 17 percent of those aged 45 or older.

Source: The Harris Poll, Going Viral: "Meme Stocks" Win Over 1 in 4 Americans

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?

Stock Ownership Has Declined

The stock market has been doing well lately, but fewer Americans are benefiting from it, reports Gallup. The percentage of adults who own stock is below the level prior to the financial crisis in 2008. Gallup asked the question: "Do you personally, or jointly with a spouse, have any money invested in the stock market right now—either in an individual stock, a stock market fund, or in a self-directed 401(k) or IRA?" Here are the responses...

Percent owning stock today (and percentage point change since 2008)
Total 18-plus: 54% (–8)
Aged 18 to 29: 31% (–11)
Aged 30 to 49: 62% (–9)
Aged 50 to 64: 62% (–7)
Aged 65-plus: 54% (+1)

Source: Gallup, US Stock Ownership Down among All but Older, Higher-Income

Dow 15,000: So What?

The Dow may have closed above 15,000 for the first time ever, but that doesn't matter to nearly half the population. The percentage of Americans who own stock is at a low, according to Gallup's Economy and Finance Survey, which has been measuring the level of stock ownership since 1998. In April 2013, only 52 percent of Americans owned stock personally or jointly with a spouse, either directly or in a mutual fund or self-directed retirement account. This figure is down from a high of 65 percent in 2007.

Here is the percentage of Americans who owned stock in April 2013 by age (and the percentage point decline in ownership since 2008)...

Aged 18 to 29:  27% (-6)
Aged 30 to 49:  58% (-14)
Aged 50 to 64:  61% (-10)
Aged 65-plus:  57% (-6)

Source: Gallup, U.S. Stock Ownership Stays at Record Low