U.S. Household Equity Ownership vs. S&P 500 While the U.S. equity market has shown remarkable resilience, the record-high household allocations suggest the market is vulnerable to a correction and muted future returns. Image: Real Investment Advice
Equity – Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors Compared to historical standards, a 52% allocation to equities among investors is considered high, which increases the potential for volatility and losses, particularly during a market downturn. Image: Goldman Sachs Global Investment Research
Personal Saving Rate and U.S. Household The U.S. personal saving rate remains well below its long-term average, reflecting a trend of decreased savings and raising concerns about individuals’ financial security. Image: BofA Research Investment Committee
Average Net Worth per U.S. Household The net worth of U.S. households has reached new highs, reflecting the ongoing strength of the U.S. economy and the robust performance of financial markets. Image: BofA Global Research
Inflation Adjusted U.S. Household Equity Ownership by Brackets In the past few years, wealth inequality has surged to unprecedented levels in the United States, with the gap between the top 10% and the bottom 90% widening dramatically. Image: Real Investment Advice
Equity – U.S. Households Aggregate Financial Asset Allocation Currently, U.S. households allocate 48% of their total financial assets to equities. This allocation reflects a high level of risk exposure, as equities are known for their volatility and potential for capital loss. Image: Goldman Sachs Global Investment Research
U.S. Household Financial Assets The total amount of cash held by households in the United States has reached a staggering $18 trillion. Image: BofA Research Investment Committee
U.S. Household Liquid Assets The amount of cash and equivalents held by households in the United States has reached an unprecedented level of $18 trillion. Image: BofA Research Investment Committee
U.S. Household Net Equity Demand by Year U.S. households’ demand for equities could be a headwind for stocks. Image: Goldman Sachs Global Investment Research
Household Debt-to-Income Ratios U.S. households have improved their balance sheets in the past decade. Image: Deutsche Bank