Listening to the politicians and pundits, it would be easy to conclude that stock ownership is the realm of the wealthy (the real wealthy). While stock ownership has dropped since the great recession, over 50% of American households are still directly or indirectly invested in stocks and mutual funds and millions more are dependent on equity investments for the security of their pension plans. The income Americans derive from these investments comes from growth in the price of stocks and the dividends paid by many companies.
Like it or not, we need big and small companies to make profits and pay dividends and we need Wall Street.
From a Gallup poll
April 20, 2011In U.S., 54% Have Stock Market Investments, Lowest Since 1999
Americans point to real estate as the best long-term investment
by Dennis Jacobe, Chief Economist
PRINCETON, NJ — Even as stocks have returned to lofty heights from their March 2009 lows, the percentage of Americans saying they hold individual stocks, stock mutual funds, or stocks in their 401(k) or IRA fell to 54% in April — the lowest level since Gallup began monitoring stock ownership annually in 1999. Self-reported stock ownership has trended downward since 2007 — before the recession and financial crisis began — when 65% of Americans owned stocks.
Eighty-seven percent of upper-income Americans — those making $75,000 or more annually — own stocks, as do 83% of postgraduates and 73% of college graduates. Sixty-four percent of Republicans hold stocks, compared with half of Democrats and independents. Men are more likely than women to be stock owners. Those aged 50 to 64 are the most likely of any age group to say they have money invested in the stock market.
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