February 1, 2023

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JP Morgan research note – Stockholdings among US households increased to the highest level on record

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A research note from JP Morgan shows the level of comfort in US stocks:

  • Individual investors are holding more stocks than ever before 
  • Stockholdings among U.S. households increased to 41% of their total financial assets in April
  • (highest level on record, from data going back to 1952)

WSJ goes on:

  • The enthusiasm for stocks comes as market volatility has been edging lower
  • and 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. Meanwhile, stimulus checks have fueled a record rise in household incomes, boosting spending and helping propel the recovery.

Easy money is not mentioned but is acknowledged in the article, comments from an investment adviser:

  • “In order to achieve our clients’ goals, we need to take on more risk,” Mr. Sadkin said. “We intend to continue to reallocate into risk assets while interest rates stay this low.”
Its been quite a ride and no end to loose monetary policy has been indicated from the Fed. I noted on Friday expectations are raising that Fed Chair Powell will nod to tapering in August. Which is about 4 months away. So much time for this to become a major market talking point ahead. Just like the end of the Fed’s SLR became (and passed by with barely a ripple). 

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