MAJOR HOUSEHOLD FINANCIAL ASSETS (in billions)
|Deposits (check, time savings)||2,650||3,258|
|Money Market Shares||229||452|
|Total Securities which consist of
|Mutual Funds as a % of total securities||13||17|
|Mutual fund assets as a % of net financial wealth.||7||10|
Yet, the public's perception is that mutual funds hold most of the U.S. equities. Wrong. At the end of 1995, they held 16% of the capitalization of the municipal bond market, 12% of the corporate equity market, 7% of the corporate and foreign bond market and 5% of the U.S. Treasury and agency securities market.
WHERE DO PEOPLE INVEST: (1997) Individual stocks, 31%; mutual funds, 30%; certificates of deposit, 27%; bonds, 25%; annuities, 15%; limited partnerships, six%; commodities, 4%. Source opinion- Research Corp. International.
ADVICE: (WSJ) (1998) relatives and friends, 68%; accountant, 22%; banker, 22%; financial planner, 18%; stockbroker, 15%; lawyer, 15%; insurance agent, 10%; no one- relying solely on oneself, 10%; don't invest in financial products, 2%. My comment- anyone using friends and relatives for investment advice is a twit.
INEQUITIES: (1999) Mentioned previously, not all people have shared in the bull market. The wealthiest 10% of Americans got 85% of the gains. The rest of America got the other 15%. In fact, just 29% of Americans own stock worth more than $5,000 (Ed Wolff). The middle fifth have watched their stock holdings double- but only from $4,000 in 1989 to $8,000 in 1997. Those in the bottom fifth own just $1,600. It simply reinforces my commentary that there will be a major social unrest between the haves and have nots the likes of which America has never seen by 2010.
STOCKS: (1999) In a study by Peter Hart associates, approximately 10 % of all adult Americans owned stocks in 1965. That had grown to 21 % in 1990 into about 43 % in 1997. The Federal Reserve Board, the estimates that 28 % of household wealth in America is now comprised of stock investments-up from 12 % in 1990.
Alternatively, real estate, which represented about 33 % of the wealth of the average American family in 1990, has fallen to a current 27 %.
STUCK IN THE MIDDLE: (NY Times 2000) middle-income families have been stuck in place for a decade, their incomes even losing ground to inflation through part of the 1990s, according to data from the Census Bureau. The median family income is somewhere between $46,500 and $50,000 a year. And it took more hours to make it. A married couple with one or two children, for example, worked an average of 3,860 hours -- more than two full-time jobs -- in 1997, up from 3,236 hours in 1979