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- The share of American families investing in the stock market rose to a record high 58% in 2022.
- That topped the prior high of 53.2% seen in 2007, just before the Great Financial Crisis.
- Direct ownership of stocks saw the largest change on record, jumping to 21% of families in 2022 from 15% in 2019.
A record 58% of American households now own stocks, according to the Fed's latest Survey of Consumer Finances, as more families put their money in the stock market, either directly or through retirement accounts and investment funds.
That's up from 52.6% in 2019 and tops the prior high of 53.2% seen in 2007, just before the Great Financial Crisis.
The survey, released every three years, indicated that a major driver for the increase was from direct ownership of stocks — that is, not through mutual funds and other accounts.
It saw the largest change on record, jumping to 21% of families in 2022 from 15% in 2019. Direct stock ownership was last that high in 2001 at 21.3%.
Federal Reserve
The average amount invested by households rose by 14% from 2019 to $489,490, in 2022-worth dollars. Overall, net worth of all families tracked by the survey jumped by 37%.
During the pandemic, an influx federal stimulus checks combined with the rise of trading apps like Robinhood, encouraged individual investors to pour their money into the market.
That coincided with the meme-stock boom of 2021, when retail traders sent shares of Gamestop, AMC, and Bed, Bath & Beyond soaring.
The Fed survey suggested that new entrants into direct stock ownership held smaller portfolios than longtime stockholding families. Median stock holdings fell by about half between 2019 and 2022, from $29,000 to $15,000.