Both the S&P 500(INDEXSP:.INX) and the Dow Jones Industrial Average(INDEXDJX:.DJI) are on a tear, hitting high after high. Yet, according to a new study published in the Financial Analysts Journal, equity ownership is at its lowest level since 1959. In 2012, investors (both retail and institutional) owned just 37.7% of the available $90.6 trillion of global stock assets. So what gives?
Howard Gold, columnist for MarketWatch and founder of GoldenEgg Investing, joined The Daily Ticker to discuss. “At the very peak of the bull markets in 1968 and 1999, it was about 63% [of all investable assets in stocks], so it’s much lower now.” Does this mean there’s still a way to go before the market reaches its peak?
Not really, says Gold. “A lot of the institutions have changed the way they invest,” he points out. “A lot of them have moved away from traditional stock and bond investing towards alternative investing.”
You can see the full “Daily Ticker” segment below: