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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2019 stock market gains still leave Trump behind his predecessors

Data: FactSet; Chart: Axios Visuals

The S&P 500 has jumped 42% under President Trump — according to market data from the inauguration through 2019's final day of trading.

Why it matters: Trump uses the stock market's surge as a barometer of his presidency's success — one that, along with the 50-year low unemployment rate, he's sure to continue to tout as the 2020 election approaches — but the gains under him lag those under former Presidents Barack Obama, when stocks rebounded from the lows of the financial crisis, and George H.W. Bush.

The new relocation test: Jobs for spouses

Illustration: Aïda Amer/Axios

The rise of dual-career couples has contributed to lower mobility rates between cities and has made it harder to recruit workers to smaller job markets.

Why it matters: Moving to a different town for a job opportunity was more common when most households had one primary earner. Now that the majority of households rely on two incomes, relocating requires finding two good jobs instead of one — a much harder proposition for many couples.

Go deeperArrowDec 31, 2019

How stocks shake off geopolitical tensions

Reproduced from LPL Research; Note: The average reflects figures from the original list. Not all market shock events were included in this reproduction; Table: Axios Visuals

U.S. stocks have already recovered their losses from tensions in the Middle East that flared when a U.S. airstrike killed Iranian Gen. Qasem Soleimani last week. The same is largely true for crude oil, which has erased all of its gains since the incident, and a number of other risk assets.

What's happening: "Welcome to the brave new world where it appears that little short of full-fledged world war between nuclear-armed powers would be required to have a durable impact on financial markets. And even then, some begin to wonder," Reuters' Sujata Rao and Dhara Ranasinghe write.