Household equity ownership at all-time high, potential crowded trade, caution for investors

From Investing.com: 2024-06-24 15:37:45

Households in America are increasing their exposure to equities, with stocks accounting for nearly 35% of household financial assets at the end of Q1 2024, a new all-time high.

Household ownership of stocks hit all-time highs 30 months ago at the end of Q4 2021, signaling a potential crowded trade for equity investors.

Despite the high ownership levels, equal weight index ETFs like Invesco S&P 500® Equal Weight ETF and First Trust NASDAQ-100 Equal Weighted Index Fund have only seen modest gains over the past 30 months, with cash outperforming.

With household ownership of stocks reaching historic levels, the question remains whether we are heading towards another crowded trade in equities and what stock performance will look like 30 months from now. Stay tuned for more updates in the market.



Read more at Investing.com: Equity Ownership by Households at All-Time High; Should Investors Be Concerned?