The rich get richer -- and own more stocks, the Federal Reserve
reported today in its triennial report, the Survey of Consumer Finances.
The lengthy report charts the changes in family finances from 2010 to
2013 and not surprisingly most American families did not experience a
sea change in their fortunes.
Stock ownership rates did not increase as values rose, according to
the report. The number of Americans who own retirement accounts also
fell over the past few years, down to 49.2 percent in 2013 from 50.4
percent in 2010. The The median value of the accounts jumped 25 percent
during that time.
Here's a few more of the central bank's findings about investing:
- Rates of direct stock ownership fell 1.3 percent from 15.1 percent to 13.8 percent over the time period, though the median value of the stock market gained 26 percent.
- Combining indirect stock ownership rates -- for instance owning stocks in mutual funds -- with the number of people who own stocks directly, paints a similar picture. Direct and indirect holdings of stock fell from a peak of 53.2 percent in 2007 to 48.8 percent in 2013.
- Proving the adage that it takes money to make money, overall stock ownership rates increased 3.9 percent for the top 10 percent of income earners. For the bottom half of earners, the three years between 2010 and 2013 saw already low levels of stock ownership further eroded.
A survey released by Bankrate in April found that Americans are still unsure about the stock market,
despite historically low yields on savings accounts and certificates of
deposit. Only 22 percent of those polled said they were pushed toward
the stock market as a result of low interest rates.
Do you own more stocks or mutual funds now than in 2010?
