About 93% of U.S. households’ stock market wealth is held by the top 10%.

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 […]

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