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U.S. households are more invested in stocks than ever and it's distorting market valuation, says JPMorgan
CNBC (Business News) ^ | 20 March 2025 | Yun Li

Posted on 03/20/2025 11:23:29 AM PDT by zeestephen

American households are allocating so much money to U.S. stocks that the valuation of the whole market is now dependent on their appetite, according to JPMorgan...This record level of ownership creates a lockstep movement between the price-earnings ratio of the S&P 500 and the retail flow into the market.

(Excerpt) Read more at cnbc.com ...


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CNBC: "Individual investors have become the most important holder of U.S. equities, owning around 60% of the universe..."
1 posted on 03/20/2025 11:23:29 AM PDT by zeestephen
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To: zeestephen

But how much of that is controlled by Blackrock, etc.?


2 posted on 03/20/2025 11:24:16 AM PDT by 9YearLurker
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To: zeestephen

Are households owning individual stocks or stocks in an ETF/mutual fund. How they own stocks makes a difference.


3 posted on 03/20/2025 11:30:34 AM PDT by vaskypilot
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To: zeestephen

if a majority of the investors are prone to panic sell, the market may reflect that...

but not for long.


4 posted on 03/20/2025 11:31:07 AM PDT by teeman8r (Armageddon won't be pretty, but it's not like it's the end of the world or something )
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To: zeestephen

Can’t have the proletariat making money like our rulers.


5 posted on 03/20/2025 11:37:19 AM PDT by Resolute Conservative
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To: Resolute Conservative

yup....left wing media:

Americans not saving money??? Bad
Americans investing int he stock market? Bad


6 posted on 03/20/2025 11:39:02 AM PDT by God luvs America (6young 3.5 million pay no income tax and vote for DemoKrats...)
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To: zeestephen

bttt


7 posted on 03/20/2025 11:39:42 AM PDT by linMcHlp
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To: 9YearLurker
Re: "Controlled by BlackRock"

The article is referring to individual accounts.

BlackRock has no authority to buy, sell, or vote the stock shares of individual accounts, unless the individual has contracted with BlackRock to manage the account.

8 posted on 03/20/2025 11:39:56 AM PDT by zeestephen (Trump Landslide? Kamala lost the election by 230,000 votes, in WI, MI, and PA.)
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To: Resolute Conservative

“Can’t have the proletariat making money like our rulers.”
___________________________________________________________

The regular “household” investor is supposed to be the patsy.


9 posted on 03/20/2025 11:40:46 AM PDT by oldplayer
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To: zeestephen

As long as the post WW2 inflationary market holds up, the index fund investors who have held their holdings throughout numerous economic storms should perform nicely.

The wildcard, which I don’t forsee happening anytime soon, would be the type of deflationary pressure that hit in the mid 1920’s and continued throughout the 1930’s.

In that environment, you would want to hold dividend paying companies that held up their valuations the best, as well as holding a strong cash position and protecting your money in Treasuries.


10 posted on 03/20/2025 11:41:05 AM PDT by unclebankster (Globalism is the last refuge of a scoundrel. )
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To: zeestephen

I have bought more stock in the last month than all of last year.


11 posted on 03/20/2025 11:41:29 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: zeestephen

Ladies and Gentlemen I give you GAMESTOP and the Robinhood rip off. To The Moon!!!


12 posted on 03/20/2025 11:43:12 AM PDT by The Louiswu (USA FIRST...USA FOREVER)
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To: zeestephen

Who reads the article?

;-)


13 posted on 03/20/2025 11:43:50 AM PDT by 9YearLurker
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To: zeestephen

U.S. households are more invested in stocks than ever and it’s distorting market valuation, says JPMorgan


Didn’t she once flash her boobs on The Gong Show?


14 posted on 03/20/2025 11:44:46 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: vaskypilot
Re: "ETFs/Mutual Funds"

A majority of USA investors hold some or all their money in ETFs and Funds.

Regardless, that still impacts the P/E Ratio of the individual stocks in the ETFs and Funds.

15 posted on 03/20/2025 11:46:57 AM PDT by zeestephen (Trump Landslide? Kamala lost the election by 230,000 votes, in WI, MI, and PA.)
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To: zeestephen

We’ve been taught over the last 40 years that the only thing that beats inflation is stocks.

Don’t blame the people for drawing the only sane conclusion.


16 posted on 03/20/2025 11:50:42 AM PDT by Uncle Miltie (Islam’s Strategy is Effective: Out-breed and murder everyone else. What to do?)
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To: zeestephen

JP Morgan thinks ordinary Americans are saving and investing too much money? Maybe it’s time for JPMorgan to exit the equities markets and switch to bitcoin, fine art (Hunter Biden paintings are at a discount right now), and politicians’ futures. Buying and owning politicians is still out of reach for rank and file Americans, but for JPMorgan, it’s a natural. Real estate used to be a sound investment for the little guys, and in some places it still is, but in blue cities and states, it puts a “tax me” sign on people’s backs. JPMorgan is big enough to hedge on Ukrainian farmground, especially given its ability to play the politicians futures markets, but that is beyond most of us.

Where does JPMorgan suggest middle class Americans park their retirement savings? Passbook savings accounts?


17 posted on 03/20/2025 11:51:57 AM PDT by sphinx
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To: zeestephen

This is why I’m 74% in T-Bills and a few Bonds. Stock/Bond account is right at a record high though, so that’s good. I hold 7 stocks, 5 of which pay good dividends. Slow and steady is fine at my age, I don’t even touch any of this money, it’s for the heirs if I don’t blow it.


18 posted on 03/20/2025 11:54:23 AM PDT by SaxxonWoods (The road is a dangerous place man, you can die out here...or worse. -Johnny Paycheck, 1980, Reno, NV)
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To: zeestephen

In other words, only the elites should get to control the stock market.


19 posted on 03/20/2025 11:54:25 AM PDT by con-surf-ative
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To: zeestephen

Long live GameStop!


20 posted on 03/20/2025 11:57:34 AM PDT by E. Pluribus Unum (Democrats are the Party of anger, hate and violence.)
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