In the fourth quarter of 2023, America’s top 1% recorded a historic combined net worth of $44 trillion, fueled by a booming stock market. The surge in net worth was largely due to the dramatic increase in stock values that closed out the year. According to recent Federal Reserve data, individuals with net worths exceeding $11 million experienced a $2 trillion increase in their wealth in the last quarter of the previous year. The data points to a significant concentration of market gains among the wealthiest individuals, with the top 1% owning half of all individually held stocks and mutual funds.
The stock market experienced substantial gains towards the end of the year, driven by positive economic indicators and decreased concerns about inflation. This rally, which began during the pandemic, has significantly contributed to the wealth accumulation of the wealthiest individuals. Collectively, Americans’ total yearly net worth reached a record $156.2 trillion, demonstrating a strong interest and reliance on the stock market as a vehicle for wealth growth. However, despite this broad increase in net worth and equity allocations among US households and nonprofits in recent decades, the benefits have primarily been concentrated among a select group of affluent individuals. The latest Federak Reserve data shows that the top 10% of Americans own 87% of individually held stocks and mutual funds, with the top 1% specifically holding half of these assets. This concentration underscores
