The ultra-rich now own a record share of stocks - with the wealthiest 10% of Americans (like Nancy Pelosi) holding 93% of US stock market wealth
Some 92.5 percent of equities are held by the richest 10 percent of Americans, Federal Reserve data showsIt is largely the already-wealthy who benefited from 2023 market gains, despite more Americans investing READ MORE: The members of Congress who made the MOST money out of trading stocks in 2023
A huge 93 percent of stock market wealth in the US is held by the richest 10 percent of the population – a new record.
While Americans on the whole have been investing in the stock market at a higher rate, the amount of wealth held is still skewed toward the richest households.
According to Federal Reserve data, 92.5 percent of equities are held by the richest 10 percent of Americans – meaning it is largely the already-wealthy who are benefiting from last year’s stock market boom.
Following a disastrous 2022, Wall Street rallied in 2023. The benchmark S&P 500 index gained 24 percent last year alone, driven mainly by the so-called ‘Magnificent Seven’ tech stocks including Apple and Microsoft.
Lawmakers were among those who made the most out of trading stocks last year, it has emerged, with some members of Congress making returns as high as 238 percent.
A huge 93 percent of stock market wealth in the US is held by the richest 10 percent of the population – a new record
Two decades ago, in 2004, 81.6 percent of stock market wealth was held by the richest 10 percent of the population, Fed figures show.
In 2014, it had risen to 86.8 percent, and has increased steadily since to the most recent figures from 2022.
While much has been said about Americans turning to investing during the pandemic – when they had more time and disposable cash on their hands – it appears that stock ownership has not shifted too much from the richest households.
A record 58 percent of households owned stocks in 2023, according to the Fed’s Survey of Consumer Finances, but in the aggregate the amount of stock most people own is small.
The bottom 50 percent of Americans by wealth owned just 1 percent of all stocks and mutual fund shares in the third quarter of last year, central bank data shows.
In the third quarter, the bottom 50 percent of households held $4.8 trillion of real estate assets, but just $0.3 trillion worth in stocks, according to Fed data cited by Business Insider.
The top 1 percent, by comparison, held over $16 trillion in stocks, and just over $6 trillion in real estate assets.
Stock market booms have traditionally reaped the most rewards for those who are already wealthy, researchers said in a 2020 study.
That is because the richest tend to have their assets tied up in equities, while the middle-classes tend to have their money in housing, the study said.
Over the past decade, the S&P 500 index has gained 155 percent, while the tech-heavy Nasdaq has risen by a huge 250 percent.
And a study released earlier this year reveals how 32 members of Congress were among those who benefited from stock market gains last year.
While Speaker of the House Nancy Pelosi is known for making significant market returns, so much so that a tool has been created dedicated to tracking her investments, she was beaten out as the best trader in 2023.
Speaker of the House Nancy Pelosi is known for making significant market returns
Democratic Rep. Brian Higgins, N.Y., took the cake with the greatest returns at 238 percent, according to a recent analysis of public financial disclosures by Unusual Whales.
He’s followed by Republicans Mark Green, chair of the Homeland Security Committee who had 122 percent returns and Rep. Garret Graves, a close ally of former Speaker Kevin McCarthy who had 107 percent returns.
Pelosi, meanwhile, saw a 65 percent return on her investments in 2023, beating the overall market.
Democratic Rep. Brian Higgins, N.Y., took the cake with the greatest returns at 238 percent
As speaker, the California Democrat was initially resistant to the movement to ban congressional stock trading.
She came around on the ban after initially defending the practice, leading to Senator Josh Hawley introducing The Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act in 2023, which has yet to pass.
The longtime Democrat Congresswoman, 83, got a 65 percent return on her investments in 2023, well over double the S&P 500’s overall 24 percent gain.