U.S. Households’ (Incl. Hedge Fund) Asset Allocation

U.S. Households’ (Incl. Hedge Fund) Asset Allocation U.S. households are currently heavily overweight in equities relative to fixed income, reflecting strong conviction in U.S. equity markets despite ongoing economic uncertainties and cautious positioning in bonds. Image: Deutsche Bank

Equities as a Share of Household Assets

Equities as a Share of Household Assets U.S. households now allocate about 49% of their assets to equities, a level that reflects strong market optimism and a significant appetite for risk. Image: Goldman Sachs Global Investment Research

U.S. Households’ Allocation to Equity, Bond and Cash

U.S. Households’ Allocation to Equity, Bond and Cash Americans’ love for stocks has driven household equity allocations to historic highs, increasing wealth but also sparking concerns about market stability and the risks of shifting investor sentiment. Image: Goldman Sachs Global Investment Research

U.S. Household Ownership of Stocks, % of Total Assets

U.S. Household Ownership of Stocks, % of Total Assets The elevated equity exposure of U.S. households, while not an absolute sign of impending market downturns, highlights the necessity for cautious investment decisions and strategic portfolio management. Image: J.P. Morgan

Breakdown of U.S. Households’ Equity Ownership

Breakdown of U.S. Households’ Equity Ownership In the United States, stock ownership is heavily concentrated among the wealthiest households. Recent data indicates that the top 10% of American households own approximately 90% of all stock market wealth. Image: Real Investment Advice

U.S. Household Equity Ownership vs. S&P 500 Valuations

U.S. Household Equity Ownership vs. S&P 500 Valuations Despite positive economic indicators and strong investor sentiment supporting the current market, the high levels of household equity allocation present risks that could trigger corrections and impact long-term returns. Image: Real Investment Advice

Inequality – Inflation Adjusted Household Equity Ownership by Brackets

Inequality – Inflation Adjusted Household Equity Ownership by Brackets Wealth inequality in the U.S. may be further exacerbated by the current stock market ownership structure, where 88% of household equity is controlled by just the top 10% of income earners. Image: Real Investment Advice

Household Asset Allocation

Household Asset Allocation The wealth gap between the rich and the middle/lower classes is significantly influenced by their asset ownership patterns. The wealthy predominantly own equities, while the middle and lower classes tend to invest heavily in real estate. Image: Goldman Sachs Global Investment Research