Nearly 40% of Americans believe that the stock market primarily serves the interests of the 1% wealthiest, failing to benefit the majority of the population. This finding comes from a new survey by Harris Poll, conducted on behalf of The Guardian, which examined the investment habits and economic perceptions of U.S. residents.
The study also revealed that many Americans misunderstand the relationship between the economy and the stock market. Nearly 40% of respondents were unaware that these are distinct concepts, and two-thirds mistakenly believed that rising stock indices automatically indicate an improvement in the economy.
The survey was conducted online by Harris Poll from July 9 to 11 among a representative sample of 2,154 adult residents of the USA. Of these, 1,667 reported having some experience with investing.
Disconnect between the stock market and the economy
Despite disruptions caused by the COVID-19 pandemic, high inflation, and the war in Iran, the American stock market has continued to show steady growth. Economists describe this situation as a K-shaped economy, where the wealth of richer Americans grows alongside the stock market, while middle- and lower-income workers increasingly lose purchasing power due to high prices.
The Dow Jones index rose by 9% over the year, while the technology Nasdaq increased by 12.5%. Following a brief decline at the start of the war in Iran, the market quickly rebounded, largely driven by a boom in artificial intelligence, which remains a key growth factor. In June, SpaceX conducted the largest initial public offering (IPO) in history, and OpenAI and Anthropic also plan major IPOs over the next year.
Meanwhile, the main benefits of market growth are concentrated among a relatively small segment of the population. Half of all stocks in the U.S. are owned by the 1% wealthiest Americans, while the bottom 50% of the population own only 1% of the stock market. Data from the Bureau of Labor Statistics, released on Tuesday, indicate that inflation in June slowed slightly to 3.5% due to lower energy prices following a brief ceasefire between the USA and Iran. However, this figure remains above the pre-war level of 2.4%.
Despite record stock market figures, half of Americans consider the current state of the stock market to be weak or have no clear opinion on it. An even larger number of respondents — 60% — similarly assess or cannot evaluate the state of the USA economy.
Economic uncertainty and the rise of online investing are prompting more young people to enter financial markets earlier than previous generations. While most adhere to long-term investment strategies, some are investing in artificial intelligence startups, cryptocurrencies, or engaging in day trading — buying and selling securities within a single trading day.
Meanwhile, a third of respondents believe that gambling can yield higher profits than investing in today’s stock market. This opinion is shared by 46% of millennials and 44% of Generation Z.
Source: The Guardian
