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RE: Embarrassing...
Posted on: July 16, 2024 at 15:08:49 CT
90Tiger STL
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Why it matters: This stat — first spotted in the FT — is a crucial bit of context to keep in mind amid the heavily hyped surge of smaller retail investors who flocked to the stock market during and after the COVID crisis.
Details: While it's true that a record high 58% of American households do own stocks via mutual funds or as individual shares, in the aggregate the amount of stock most of these folks own is tiny.
The big picture: Despite the trauma of the last few years — the collapse of stocks in the early days of the pandemic, and the brutal bear market brought on by the Fed's rate hikes over the last couple of years — the stock market has soared over the long term.
In the last 10 years, the S&P 500 gained 155%, and the tech-heavy Nasdaq rose a whopping 250%.
Between the lines: While bullish surges like those are welcome to pretty much all investors, the fact is that the majority of the gains go to the richest stockholders.
Details: While it's true that a record high 58% of American households do own stocks via mutual funds or as individual shares, in the aggregate the amount of stock most of these folks own is tiny.
The big picture: Despite the trauma of the last few years — the collapse of stocks in the early days of the pandemic, and the brutal bear market brought on by the Fed's rate hikes over the last couple of years — the stock market has soared over the long term.
In the last 10 years, the S&P 500 gained 155%, and the tech-heavy Nasdaq rose a whopping 250%.
Between the lines: While bullish surges like those are welcome to pretty much all investors, the fact is that the majority of the gains go to the richest stockholders.
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RE: Embarrassing... - 90Tiger STL - 7/16 15:08:49
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