Data: Federal Reserve. Chart: Axios Visuals The share of U.S. households that own stock either in mutual funds, retirement accounts or as individual shares hit a new high in 2022.
Why it matters: The large share of households with a stake in the stock market is a distinctive feature of American capitalism, setting it apart from other big advanced nations, Matt Phillips reports for Axios Markets
By the numbers: The Fed's just-published triennial Survey of Consumer Finances shows that in 2022, about 58% of American households owned stock, either directly or indirectly through mutual funds and other investment accounts.
That's the highest on record — trouncing the previous high water mark of 53% seen during the dot-com boom and right before the Global Financial Crisis.
What's happening: The rise in those who own stock directly — that is, by buying individual shares rather than through mutual funds — was a big driver.
Direct ownership of stocks increased "markedly" between 2019 and 2022, jumping from 15% to 21% — making it the largest change on record, the Fed said in its report.
Matt's thought bubble: This reflects COVID-related changes in behavior among Americans, many of whom first turned to the stock market as a way of scratching a sports gambling itch during the early phase of the pandemic.
Smartphone-based apps aimed at younger traders, notably Robinhood, helped build the habit.
Surging retail stockbuying famously became a cultural phenomenon in January 2021, when coordinated retail investors helped drive the share price of GameStop into the
