The wealthiest 10 p.c of Americans(*10*) now personal 89 p.c of all U.S. shares(*10*) held by households, additional cushioning wealth inequality.
Amid the COVID-19(*10*) pandemic, many Americans have been pressured out of their properties, unable to work and surviving one of the best ways they knew how. Whereas on the opposite finish of the tax bracket, the highest 1 p.c gained greater than $6.5 trillion in company equities and mutual fund wealth, CNBC’s Robert Frank studies. The backside 90 p.c of Americans added $1.2 trillion, in keeping with knowledge from the Federal Reserve.
And the identical goes for shares. By the second quarter, the share of company equities and mutual funds owned by the highest 10 p.c grew to file ranges. The backside 90 p.c of Americans held solely 11 p.c of individually held shares.
“The top 1% own a lot of stock, the rest of us own a little,” mentioned Steven Rosenthal, senior fellow, City-Brookings Tax Coverage Heart.
The shift comes after new buyers moved into the inventory marketplace for the primary time throughout the pandemic. CNBC studies that Robinhood, an American monetary service, opened greater than 10 million new accounts within the final two years. “Many of the younger investors also bought in at higher prices, compared to bigger investors who have been in the market for years and see larger gains,” Rosenthal mentioned.