Rallying stocks yield 300,000 new US millionaires
There are now nearly 9 million households whose net worth totals $1 million or more, up from 8.6 million in 2011 and just short of the 9.2 million record set in 2006.
According to data from Spectrem Group, a Chicago wealth research firm, there are now 8.99 million U.S. households whose net worth totals $1 million or more (not including primary residence). That's up from 8.6 million in 2011 and just short of the all-time record set in 2006, when the United States had 9.2 million millionaire households.
The stock market's rise has been the biggest driver of millionaire creation. With this year's gains, Spectrem said, the United States may have already exceeded its all-time record.
Most of the benefits from rising stocks have gone to the wealthy, since the top 10 percent of Americans own more than 80 percent of all stocks, according to research from Edward Wolff of New York University. But the recent stock surge has also created a new gap within the wealthy, or at least between millionaires and the so-called affluent.
According to Spectrem, the number of households worth $1 million or more, and $5 million or more is near the record. But the number of households worth $500,000 or more (the affluent) is much lower than the record in 2007. There are 14.3 million households worth $500,000 or more — down from 15.7 million in 2007.
Catherine McBreen, president of Spectrem Group's Millionaire Corner, said that millionaire households held more stocks -- and therefore have benefited more from the market's run-up. It's not just a matter of money. Wealthier households also tended to make better investments, or at least more bullish ones, staying in the market during the recession while less wealthy investors bailed out.
Affluent households had more than half their investable assets in some kind of equities in 2005, but in 2012 it dropped to a third. Millionaire households have 71 percent of their investable assets in some form of equities -- up from 61 percent in 2005.
"The reason the affluents haven't recovered as quickly is their stock holdings," McBreen said. "Many of them simply pulled out of the market. They have more cash. But more of the high-net-worth households stayed in."
She said the millionaire households were more likely to be older and retired, so they could afford to keep more money in the market.
"The affluent group may be high earners, but they also might have high expenses like college tuition."
© 2013 CNBC
More from CNBC
So 7.5 percent of all US households, excluding their primary home, have a net worth of a million dollars or more? Given, there are about 310 Million people in the US and the average household size in the US is 2.6 people per household this calculates to about 120 million total US households. According to the article, an estimated nine million households are millionaire’s results in 7.5% of all households (9/120) are millionaires. For some reason, this seems a little high to me..
The only game in town....The DOW is reading suspiciously like the housing bubble of 5-years past.
If one has capital, and one needs income, just where should that capital be placed? Housing is flat. Banks are paying, literally, next to nothing on CD's, and etc.
Hey. I'm living in the real world here. My sister in law is out of work. My brother's company is barely hanging on, my youngest brother is out of work. And I lost my job 5-years ago, now retired, but not by choice, collecting Social Security.
The DOW'll puff itself up and then, fall flatter than a pancake. That is the real world.
The only reason it is up is because the feds are putting in 84 billion a month into it.
No private person is really investing right now some are but most are not because they know it is feds money that is driving the DOW up.
Now when enough people believe they made the money they like they will pull out and crash. Will happen this year watch.
Good sign is the number of exchanges only up 83 but 117 million was exchanged that is not a good sign in fact it is a very very bad sign...
And the more you make the higher the taxes. Sounds great right now but it will start tumbling again and then everyone will be crying, especially Wall Street. After all it can only go so high before it happens. I for one have saved enough, less than $500K to finance my current retirement plus I also have an employer pension. I will just keep my money and forget about investing. My life is simply good as is which some might argue that it is a rich life.
Rich getting richer.Makes me feel better about where things are headed.
you reckin' those new millionaires will be back in the toilet when the market Burps? ......Jus' thinkin.....
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
New legislation is allowing foreign companies to finally invest in the country's vast oil reserves.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.