In the United States, household participation in the stock market is now at an all-time high, with 58% of all households owning stocks directly or indirectly. This is higher than the 51% average seen between 2013 and 2019, according to Fed data cited in the SCF survey.
Historical Trends
Before the era of digital financial investment, market participation stood at 37% in 1992.
Indirect ownership involves participating in the market through intermediaries such as management companies within wealth management, mutual funds, hedge funds, or other financial organizations.
The participation rate in the stock market is as high as 96.4% among the wealthiest 10% income group and 91.7% in the 80th to 90th percentile, which represents the second-highest income decile group. The richest 20% (94% of whom own shares) can be considered as the affluent segment of the middle class, comprising over 63 million people who own assets and individuals related to them, including family members.
The middle class, which constitutes the top 40% by income, holds stocks in 86% of families, while the 60 - 80% income group (the 3rd and 4th highest income deciles) has a participation rate of 78.7%.
Among the poorest 20% in the U.S., only 17% of families are represented in the stock market, but even this figure represents the highest presence ever, an increase of 5 percentage points from 2010 - 2019.
Median Asset Value
The median asset value in the stock market for all families in 2022, among those who own assets, is $52,000 (with the market being 3,800 points above the S&P 500). This can be considered the average for American families in terms of stock ownership.
The wealthiest 20% are represented in the market by 94% of all families, leaving only 6% of families outside the market. Furthermore, they hold 87% of the total market capitalization. In contrast, the poorest 20% are represented by only 17% of families and hold just 1.2% of the market capitalization.
Among older individuals, a significant portion of assets is concentrated. The median asset value in stocks reaches $160,000 for those in the 65 - 74 age group, compared to $110,000 in the 55 - 64 age group, $68,000 in the 45 - 54 age group, $30,000 in the 35 - 44 age group, and young people under 35 have an average of about $12,000 in assets.
Conclusion
The data underscores a significant increase in household participation in the U.S. stock market, reaching an all-time high of 58%. This trend towards broader involvement is encouraging, even among less affluent households. While wealthier groups maintain dominance, there is a positive shift towards financial inclusion.