In today’s U.S. edition of The Wall Street Journal, a front-page article, titled Americans Can’t Get Enough of the Stock Market, referenced some interesting data:
Stockholdings among U.S. households increased to 41% of their total financial assets in April, the highest level on record going back to 1952 that includes 401(k) retirement accounts
The S&P 500 has hit 25 records this year, fueled by a stellar earnings season and the prospect of an economic recovery that is speedier than many predicted
Stimulus checks have fueled a record rise in household incomes, boosting spending and helping propel the recovery.
Retail clients at Bank of America Corp. have bought stocks for nine consecutive weeks, while hedge funds and other big investors have recently fled the stock market
Individual investors tend to buy more shares when the S&P 500 is down 1% on the day than when it is up by the same amount, and that their resolve to buy during selloffs has strengthened during the pandemic. Some have even borrowed to amplify their stock-market bets.
Investors’ allocations to the stock market hit around a three-year high of 70% in March
