Goldman Sachs Predicts American Households Will Pour $425,000,000,000 Into Stock Market This Year: Report

Goldman Sachs Predicts American Households Will Pour $425,000,000,000 Into Stock Market This Year: Report

Banking giant Goldman Sachs says that US households will continue to pump money into the stock market this year, remaining the main buyer of equities.

In a note seen by Bloomberg, Goldman analysts led by David Kostin say they expect American households to directly purchase $425 billion worth of US equities this year.

In doing so, households would trail only corporations, which the bank predicts will buy $675 billion, as the top sources of stock demand.

Goldman partially bases the forecast on the concept that “there is no alternative” (TINA) to US markets.

“TINA trade remains alive and well in US retirement accounts.”

A separate group of Goldman analysts says that during the “liberation day” stock crash in early April, US households aggressively bought the dip, but have since turned into net sellers. However, that selling pressure has been offset by new institutional demand, according to the bank.

“The resilience of household demand for equities is vital because households represent the largest ownership category of the US equity market… Households directly own 38% of the US equity market and control an even larger share including indirect ownership through funds.”

goldman sachs predicts american households will pour 425000000000 into stock market this year report
Source: Goldman Sachs/Bloomberg

The analysts added that Americans, on average, allocate 49% of their total financial assets to equities, which is the highest level on record and just above the previous high of 48% set in 2020. In comparison, people in the euro area only allocate 10% of their total assets to stocks, and just 13% in Japan.

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Rodion Krotov
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