The roaring stock market rally that President Trump loves to boast about has left half the country behind.
Only 54% of Americans have money invested in the market, either through individual stocks, mutual funds or retirement plans like a
401(k), according to a Gallup survey in April.
That’s down from 65% just before the Great Recession — meaning that millions of people have sat out one of the longest bull markets in history. The S&P 500 has nearly quadrupled, and lately, the Dow is setting record highs day after day.
Lower-income Americans, many of whom by definition don’t have extra money to invest, can’t feel that red-hot stock market. Stock ownership is just 21% of people with household income of less than $30,000 a year, according to Gallup.
The rally is very real for wealthier Americans: 89% of those who make at least $100,000 own stocks. And, incredibly, the richest 20% of Americans owned 92% of all stocks in 2013, according to research by NYU economist Edward Wolff.
One reason so few Americans are invested is that a third of workers don’t have access to a 401(k) or another retirement plan.
“If you’re a coal miner in West Virginia without a 401(k) or stock market exposure, you don’t care about all-time highs,” said Andres Garcia-Amaya, global market strategist at independent wealth management firm Zoe Financial.
“It’s easy for us sitting in New York to look at the market and say everyone is doing well. The reality is that a huge portion of the population is not participating in this,” he said.
You wouldn’t know it from Trump’s tweets. He regularly brags about stocks, which have soared since his election last fall.
source: market boom