All Americans are on the stock market.
Individual investors hold more stocks than ever as major indexes climb to new highs. They also increase the ante, borrowing to increase their bets or increasingly buying at small declines in the market.
Shares among US households rose to 41% of their total financial assets in April, the highest level in history. This is according to JPMorgan Chase & Co. and the 1952 Federal Reserve, which include 401 (k) pension accounts. Nikolaos Panigirzoglu of JPMorgan, who analyzes the data, attributes the increased distributions to stock price valuation along with stock purchases.
Enthusiasm for stocks comes as market volatility declines and the S&P 500 hits 25 records this year, fueled by a stellar earnings season and the outlook for an economic recovery that is faster than many had predicted. Incentive checks, meanwhile, are fueling record household income growth, increasing spending and helping to speed recovery.
Next week, the monthly report on jobs and revenue results from companies such as Uber Technologies Inc. will provide evidence of the strength of the recovery.