The stock market has boomed since March 2009. Putting a dollar into the popular S&P 500 index that tracks the largest companies that trade on U.S. stock exchanges in March 2009 would leave with you with about $3 today. That’s a 200% return. But only 49% of Americans have any money in stocks at all according to the most recently released Federal Reserve.
That figure encompasses everyone invested in retirement funds like pensions and 401k plans as well as those who take the time and effort to purchase specific stocks, whether General Electric, Facebook or Ford. As reported by CNNMoney, even among the half of America that has money in the market, there are vast disparities. The top 10% of American households have a median value of $282,000 in the stock market. That compares to a mere $14,000 for members of the middle class.
Education also plays a major role. 72% of households led by someone with a college degree have investments in stocks compared to only 35% of households headed by someone with a high school diploma as their highest form of educational attainment. Despite the heady performance of the past 5 years, many people remain hesitant to engage the stock market. In 2007, prior to the downturn, stock ownership peaked at just over 53% of American households.
