The graph is presented here with permission from EPI.EPI describes that this chart shows that "[i]n 2004, the wealthiest 1% owned 36.9% of all stocks, while the next 9% owned 41.9%. Hence, the wealthiest 10% controlled about 80% of all stocks while the bottom 90% owned just over 20%."
More information on this chart is on EPI's website.
There are several things about this that are fuzzy to me. For example, the text on their site says that this is for "all stock", but I'm guessing they mean all U.S. stock. Also, ownership adds up to 100%, in spite of the fact that there's obviously lots of foreign investment in U.S. stock. So I think the percents are based on U.S. stock owned by U.S. citizens. Maybe the answers are there somewhere, but I just haven't found them.
Anyone have better or clearer information on this topic?
6 comments:
I'll try to do some digging. The common number I hear is that some 100,000 Americans own stock but that definitely includes indirect ownership through mutual funds. I think that number is up significantly since the invention of the 401k in, what, 1996? and mutual funds in the 70s (I think). Of course, pension funds are heavily invested in same.
This indirect ownership makes the statistics somewhat hard to track but I'll see what I can find out.
LJ is absolutely correct that someone who owns 250,000 shares of Megacorp will never be heard without some kind of huge alliance with like minded sharehlders, but those 401k mutual fund and pension managers sure will be.
The only way that most Americans should own stock, by the way...I wish I could convince my mom of that...not many of us have the time, skills, inclination or dollars to study and diversify appropriately otherwise. That is what really killed the Enron employees. Linking one's employment AND retirement to one company is very dangerous. Enron's behavior was scandalous in encouraging its employees to put Enron stock in their retirement plans. To the extent EM did the same...that is also scandalous.
LJ will be happy to know that I seriously discouraged someone he has met from investing in his not-so-beloved ExxonMobil, but not for the same reason as he might have done. This person is heavily dependent on oil and gas interests. To peg her stock accounts to the same industry makes no sense at all. She should stay as far away from that industry as possible.
This site/graph claims its counting indirect ownership as well as direct.
OOOPS, just realized I left 000 off that last note. Should have been 100,000,000 Americans. The first graph in your linked article put it at about 50% of households three years ago so we seem to be in about the same ballpark.
Some very brief work today indicated it might be more like 50,000,000
50,000,000 people or households?
People/Americans. I was trying to reduce the "common number I hear" from 100,000,000 [originally and mistakenly posted as 100,000]to 50,000,000.
Post a Comment