Direct Stock Ownership at its Lowest Since 1962
A study by the Pew Research Center, published in May, found stock ownership has become even less pervasive, just 45%. A study by the University of Michigan published Sept. 8 found the percentage of U.S. households owning stocks either directly or indirectly dropped to under 18% in 2011, down from 30% in 2001. Just 16% of households hold stocks directly, the lowest number since 1962, according to the study. So, given the rate of declining participation, what exactly should we make of the market’s recent rally, and current turn for the worst? A few things.