Fed Data Reveals Top 10% Hold 89% Of Stocks

Despite a massive rise in unemployment and the closing of businesses due to COVID-19, some of America's richest companies and individuals made a lot of money during the pandemic. On Monday, CNBC reported that the wealthiest 10% of U.S. citizens hold 89% of all U.S. stocks.

The disparity is a new record, according to Federal Reserve data. However, while the stock market was “the main source of wealth creation in America during the pandemic" it was also "the main driver of inequality.”

According to Yahoo Finance, the stock market suffered technical damage from early September and into October but is back in “rally mode.” This “rally” is because “the technical damage done to stocks from early September through early October is being repaired. Traders love seeing this type of action as it often becomes self-fulfilling."

There are still concerns “given the major inflationary and supply chain pressures on the income statements of corporate America.” However, according to Yahoo Finance, investors will ignore these pressures so long as there are “solid bank earnings” which will tell a lot about how reporting season will go.

While the top 1% gained $6.5 trillion in corporate equities and mutual wealth funds during the pandemic, everyone else added only $1.2 trillion in wealth by comparison.

Ninety percent of U.S. citizens hold only 11% of stocks. The top 10% benefit most from stock market gains.