U.S. Stock Ownership Nears Record High

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US stock ownership nears record, will keep climbing

Investors can’t seem to get enough of plain old U.S. stocks, and demand, already near an all-time high, shows no signs of slowing down as the S&P 500 sits at a record high.

“Households, foreign investors, mutual funds, and pension funds collectively own 91% of the US equity market,” noted Goldman Sachs in a recent research note. “We forecast households will be net buyers of $400 billion in equities in 2021 driven by the buildup of cash in money market funds, anemic credit yields, and a rebound in retail trading activity,” the team, led by David Kostin, detailed.

Trading among the retail community has jumped, in part due to firms such as Robinhood, which in a recent campaign touted the ease of investing with just $1.

The other component expected to drive stocks higher, according to Goldman, is buying from big business. “Corporations will be the largest source of equity demand for the remainder of 2021, as we expect buybacks to accelerate and issuance to slow from peak 1Q21 levels,” Goldman said.

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