baby boomers own 55% of the stock, valued at $22 trillion; millennials own 2.5% of the shares
baby boomers own 55% of the shares, and those shares are worth $22 trillion, more than twice the percentage and value of shares held by Gen Xers and more than 25 times that of Gen Xers. millennials.
It’s not much of a surprise that baby boomers own a relatively large amount of stocks. They have had more time than Gen Xers and Millennials to accumulate wealth on Wall Street and see their investments grow.
As more baby boomers retire, their share of the stock has begun to decline. in the last quarter of 2019 they owned 55.9% of the shares. in the second quarter of 2021 they owned 54.5%. this is also to be expected, as retirees often liquidate their stock holdings when they need cash.
The share of shares owned by Gen Xers rose over the past decade after a sharp drop amid the 2008 recession.
Millennials have seen slower growth in stock ownership; however, the pace has started to pick up a bit over the past year. in the first quarter of 2020, millennials owned 1.8% of the shares. by the second quarter of 2021, they owned 2.5%, reaching the $1 trillion mark in value.
younger americans have an appetite for stocks: millennials and members of generation z invest more in the stock market than in other financial assets, including cryptocurrencies.
They are also willing to buy more individual stocks: 25% of those generations invest in 5-10 stocks, and the majority believe that a strong portfolio should include 10 or more stocks.
The percentage of stock owned by millennials should continue to grow as they enter their prime earning years.
white Americans own 90% of the stock, worth $36.15 trillion
Stock ownership splits dramatically along racial lines, with white Americans owning 89.5% of the stock, worth a total of $36.15 trillion.
The proportion of stock owned by white Americans has declined over the past 20 years (white Americans owned 96.2% of stock in 1989), but the breakdown of stock ownership by race is far from reflecting the racial breakdown of usa uu. population.
The proportion of stock owned by African Americans hasn’t changed much in the last 20 years, and the proportion of stock owned by Hispanic Americans has actually decreased.
Since 1990, the proportion of stock owned by African-Americans has not exceeded 1.6%. Before and during the 2008 recession, African Americans owned less than 1% of the stock. As of the second quarter of 2021, they owned 1.1% of the shares, worth $450 billion.
Hispanic Americans have seen a decline in stock ownership since 2016, when they owned about 1.8% of the stock. in the second quarter of 2021, that share had sunk to 0.4%.
Meanwhile, the proportion of stock owned by non-Black, non-Hispanic, and non-White Americans has increased from about 3% in 2005 to 8.9% in the second quarter of 2021. The value of stock owned by that segment grew about 10-fold during that period, from about $300 billion in 2005 to more than $3 trillion in 2021.
The value of stocks held by white households is also more than three times the value of stocks held by black households and Hispanic households.
In 2019, the median value of white household stocks was $50,750. the median value of stock holdings for black and Hispanic households was $15,000.
buy and keep
It is encouraging that 56% of American adults own stocks and we expect to see future growth in stock ownership, particularly among Hispanic and Black households.
there’s a data-backed idea that should encourage the 44% of americans who don’t own stocks to become investors: the s&p 500 index, on average, offers an annual return of 8-9% and some portfolios have outperforming the s&p 500. individual investors can take advantage of those returns by buying individual stocks, investing in mutual funds or an index fund, or contributing to a retirement plan that invests money in the market.
Investors are more likely to accrue positive returns if they hold onto their investments: The motley fool recommends holding onto them for at least five years, even through market volatility.
And while getting started with investing may seem daunting, investing just a small amount each month and sticking with it for the long haul can reap big financial rewards in the long run.
- department of labor (2021). “Private Pension Plans Bulletin Historical Tables and Graphs 1975-2019.”
- Federal Reserve (2021). “dfa: distributive financial accounts.”
- federal reserve (2020). “Survey of Consumer Finances”.
- gallup (2021). “stock market”.
- gallup (2021). “What percentage of Americans own stocks?”