Jun 1, 2017

The financial crisis made average Americans wary to invest

The gap in how much stock different sectors of society owns has widened since the financial crisis, leaving wealthier people owning more stock than everyone else, per a Gallup analysis.

Data: Gallup; Note: Personal ownership or with spouse, includes individual stock, market fund, 401(k) and IRA; Chart: Andrew Witherspoon / Axios

What the analysis shows: Every income bracket has fewer people invested in the stock market after the crisis — except for those households with incomes above $100,000, which actually increased their stock investments. Adults older than 65 also upped their investments.

What it means: Wealthier households have been benefitting from the recovery and upward trends in the stock market while middle income households aren't since they haven't been buying in to the stock market.

Why it matters: This indicates wealth inequality may be alive and well, and shows that the financial crisis may have "fundamentally changed" how middle income households view stocks as an investment, as Gallup's Jeffrey M. Jones put it.

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