US households now own ~42% of the US equity market, their highest proportion since the late 1990s.
Foreigners another 18%
Mutual Funds, Hedge Funds and ETF’s combined own 35%.
https://x.com/KobeissiLetter/status/2115088111654797531
So IF someone was powerful enough AND desired to strip wealth from middle class — wouldn’t this be a grand time to crash the stock market? Or perhaps they give the ETF’s a few more months to close out their positions? Household and foreigners would then take most of the losses from a market crash.
“Mutual Funds, Hedge Funds and ETF’s combined own 35%.”
They don’t OWN the shares they hold. They have fiduciary holdings (in trust for beneficiaries).
Households OWN the shares in those mutual funds and ETFs as well. Just not directly.
So households are MUCH more exposed.
Excellent point Pedro!!