MAJOR HOUSEHOLD FINANCIAL ASSETS (in billions)

Asset type 1986 1995
Deposits (check, time savings) 2,650 3,258
Pension reserves 2,265 5,510
Life Insurance 264 542
Money Market Shares 229 452
Total Securities which consist of

Corporate Securities

Mutual Funds

2,497

1,435

334

7,416

4,313

1,265

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

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