There are differences by age as well, but even among families headed by a young adult (those under 35), 41% own some stock, either directly or indirectly. By comparison, the median for black families is $12,000, and for Hispanic families it is just under $11,000. Median investments vary here as well: Among whites the median is about $51,000. A majority (61%) of non-Hispanic white households own some stock, compared with 31% of non-Hispanic black and 28% of Hispanic households. For those at the higher end of the income scale, the median amount is more than $130,000.įamilies headed by white adults are more likely than those headed by black or Hispanic adults to be invested in the stock market. Among those with incomes less than $35,000, the median amount held is less than $10,000. The amount of assets families hold in stocks also varies considerably by income. The shares increase as income rises, and among those with incomes above $100,000, 88% own stocks – either directly or indirectly. But even among those with annual family incomes of less than $35,000, about one-in-five have assets in the stock market. Participation in the stock market varies considerably across demographic groups. Historical data on S&P 500 index closings was derived from Yahoo Finance. Workers’ access to a union- or employer-sponsored pension or other retirement plan is based on the 2019 Current Population Survey Annual Social and Economic Supplement (IPUMS). In this post, the terms “family” and “household” are used interchangeably. It also has detailed demographic information on the head of each family (a family is often the same as a household, consisting of an individual, couples and other family members, where present). The SCF is designed to provide detailed information on the assets and liabilities of U.S. This is a triennial survey, and 2016 is the most recent one available. Most of the analysis is based on the 2016 Survey of Consumer Finances (SCF), sponsored by the Federal Reserve Board of Governors and the Department of the Treasury. This post explores how many families have a financial stake in equity markets. The economic uncertainty and upheaval caused by COVID-19 has contributed to a broad-based decline in the value of U.S. Most of this comes in the form of retirement accounts such as 401(k)s. While a relatively small share of American families (14%) are directly invested in individual stocks, a majority (52%) have some level of investment in the market. workers (41%) have access to employer- or union-sponsored retirement plans, with the values of many of these plans linked to the stock market.ĭata from 2016, the latest available, provides key insights into the broad reach of stock market investment in the United States. The steep fall in stock prices comes at a time when roughly four-in-ten U.S. Even so, the losses will impact a wide swath of American families.

The economic stimulus package agreed to by Senate leaders and the White House appears to have restored some optimism in the market, at least for now. This rate of descent is much sharper than during the initial stages of the Great Recession, when it took from October 2007 to October 2008 to see a similar decrease in the index. 19 this year to 2,305 on March 20, a loss of 32%. The S&P 500 index fell from 3,386 on Feb. stock market to wipe away three years of gains in a matter of weeks. Uncertainty driven by the current coronavirus outbreak has caused the U.S.

(Luiz Roberto Lima-ANB/Pacific Press/LightRocket via Getty Images) The statue “Fearless Girl,” across from the New York Stock Exchange, wearing a mask on March 22.

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