The Dow's record high is a big deal if you own stocks. Half of Americans don't own any.


Wall Street rejoiced early Wednesday when the Dow Jones Industrial Average — a benchmark index of 30 U.S. companies — rose above 22,000 for the first time, then celebrated again when it closed above 22,000.
But fewer than 15 percent of Americans own individual stocks and about half of the country has no money invested in the stock market at all — not through a 401(k), IRA, mutual fund, or pension fund — according to Federal Reserve surveys and Gallup polls. Those people are probably not as excited about the Dow's new high-water mark, and its sprint northward from about 18,000 last November — the "Trump bump," sustained by robust corporate earnings.
"Only people with assets like stocks and houses are benefiting, and that's why this recovery has been weak," Torsten Slok, chief international economist at Deutsche Bank, tells The New York Times. According to Gallup, 89 percent of households earning $100,000 or more have some amount invested in the market, versus only 21 percent of families earning $30,000 or less. Stock ownership is "heavily tilted toward rich guys: doctors, lawyers, accountants," Steven Rosenthal, a senior fellow at the Tax Policy Center, tells The Washington Post. "It's not the middle class."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
That has always been true, but the disparity seems to have gotten worse after people were burned in the 2008 market crash. Before the crash, in 2007, 65 percent of Americans adults were invested in the stock market, versus 54 percent currently.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores