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Wealthiest 10% in U.S. Own 89% of Stocks and Mutual Funds

The wealthiest 10% in the U.S. hold 45% of real estate, 54% of pension entitlements, 85% of private businesses and 34% of consumer durable goods.
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The top 10% wealthiest Americans own 89% of stocks and mutual fund shares, according to a Federal Reserve report issued earlier this month.

That group holds 45% of real estate, 54% of pension entitlements, 85% of private businesses and 34% of consumer durable goods.

“The top 1% own a lot of stock; the rest of us own a little,” Steven Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center, told CNBC. The wealthiest 1% of us own 54% of stocks and mutual fund shares.

Stock owners have been treated to a feast over the past 10 years.

The S&P 500 has registered a total return of 20.4% in 2021 to date, 30.27% over the last year, 19.72% annualized for the past three years, 18.15% annualized for the past five years and 16.14% annualized for the past 10 years.

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Goldman Sachs says that if fears of stagflation continue to grow, stocks with pricing power will likely thrive. It lists a slew of names, including Nike  (NKE) - Get NIKE, Inc. (NKE) Report, Philip Morris  (PM) - Get Philip Morris International Inc. Report, 3M  (MMM) - Get 3M Company Report and Adobe  (ADBE) - Get Adobe Inc. Report.

“Stocks with strong pricing power have recently lagged but appear attractive if stagflationary concerns continue to build,” Goldman analysts led by David Kostin wrote in a commentary.

“If inflation remains high alongside a weakening economic growth outlook, firms with strong pricing power should be best-positioned to maintain profit margins despite slowing revenue growth and rising input costs.”

To be sure, the analysts aren’t convinced that inflation is here to stay. Consumer prices leaped 5.4% in the 12 months through September.

Related: Retirement Is More Than a Solid Financial Plan