A new Federal Reserve Survey of Consumer Finance has found that fewer than half (48.8 percent) of Americans directly or indirectly owned stocks last year, which is the lowest level since 1995, a time when only 40.5 percent owned stocks.
Just 14 percent of Americans owned stocks directly, down from 21 percent more than a decade ago – indirect stock ownership consists of stocks held in mutual funds, 401-K plans and other investment vehicles.
Stock ownership peaked in 2001, when stock ownership was at 53 percent, and it has been a downhill trend since then amid bubble concerns and financial collapses akin to the Great Recession a few years ago.
Financial analysts say that this is another signal of income inequality because 93 percent of the wealthiest 10 percent of Americans maintain ownership in stocks. However, anyone can walk into their local financial institution or browse their bank’s website and launch a mutual fund or web brokerage account.
Here is the data of the percentage of Americans with direct or indirect ownership of stocks (via the Fed):
1989: 32%
1992: 37%
1995: 41%
1998: 49%
2001: 53%
2004: 50%
2007: 53%
2010: 50%
2013: 49%
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