GALLUP NEWS SERVICE
PRINCETON, NJ -- Seventy years ago today the stock market plummeted, signaling the onset of the Great Depression, the worst financial crisis this country has ever experienced. By the early 1950s, more than twenty years after the crash, only 8% of Americans reported having some investments in the stock market. But according to a Gallup poll conducted October 21-24, 60% of American households are now invested in the stock market, a number that has remained stable in Gallup polls conducted over the past two years.
The stock market used to be considered the financial haven of the very rich, but today -- mostly because of the growth of retirement funds, such as 401 (k) and Individual Retirement Accounts -- Americans of even modest incomes report stock market investments. Among middle income Americans, for example, those with annual family incomes in the $30,000 to $50,000 range, almost two-thirds -- 65% -- report that they have money invested in the stock market. Many families with even lower incomes also report such investments. Of those in the $20,000 to $30,000 range, 43% are invested in the stock market, as are a third of families in the $15,000 to $20,000 range. At the other end of the spectrum, 84% of families with annual incomes of $50,000 to $75,000 report stock market investments, as do 86% of families earning over $75,000 a year.
Differences Among Age Groups and Income Levels
Baby boomers, age 35-53 (born in the years 1946-1964) report the
highest rate of stock market investment (66%), only a little higher
than the rate of investment (62%) among Americans age 54-64, but
significantly higher than the 53% and 55% rates among the youngest
(18-34) and oldest (65+) Americans respectively. These lower rates
of stock market investments, however, appear to be more related to
the lower income levels reported by these groups. Among Americans
with similar levels of income, rates of investment are also
similar. For example, while the overall investment rate of young
Americans is lower than that of the baby boomers, the rate is
identical (85%) among both age groups who earn at least $50,000 a
year, which is similar to the rate within the 54-64 age group (88%)
and only slightly higher than the 80% reported by the 65+ age
group.
Decline in Optimism Over Past Month
With the recent wild swings in the stock market, Americans have
become somewhat less bullish, although they remain more positive
than negative. When asked in the latest poll whether it would be a
good or bad idea to invest $1,000 in the stock market now, the
optimists won by the margin of 51% to 44%, but that was down
significantly from the 60% to 33% margin recorded in a poll six
weeks earlier. Gallup first asked this question in July 1997, when
62% said it would be a good idea to invest $1,000 and 33% said a
bad idea. On September 1, 1998, the day after the more than
500-point drop in the stock market, Americans were evenly divided
on the wisdom of investing in the market, with 48% saying it would
be a bad idea and 46% a good idea. But by March of this year,
optimism had recovered , and it remained high in polls conducted in
June and September as well.
Despite the volatility of optimistic opinions recorded among all Americans, stockholders appear more steadfast in their positive feelings about investing in the stock market and are always more apt to express optimism than are non-stockholders. In the current poll, 63% of stockholders say it would be a good idea to invest in the stock market and 35% say a bad idea. By contrast, only 33% of non-stockholders say it would be a good idea to invest, and 57% say a bad idea.
Survey Methods
The results reported here are based on telephone interviews with a
randomly selected national sample of 1,005 adults, 18 years and
older, conducted October 21-24, 1999. For results based on the
whole sample, one can say with 95 percent confidence that the
maximum error attributable to sampling and other random effects is
plus or minus 3 percentage points. In addition to sampling error,
question wording and practical difficulties in conducting surveys
can introduce error or bias into the findings of public opinion
polls.
Do you personally or jointly with a spouse, have any money invested in the stock market right now -- either in an individual stock, a stock mutual fund, or in a self-directed 401-K or IRA?
| Yes | No | No opinion | |
|---|---|---|---|
| 1999 Oct 21-24 | 60% | 39 | 1 |
| 1999 Sep 10-14 | 57% | 42 | 1 |
| 1999 Jun 4-5 | 57% | 42 | 1 |
| 1999 Apr 30-May 2 | 58% | 40 | 2 |
| 1999 Mar 12-14 | 61% | 39 | * |
| 1998 Sep 1 | 60% | 39 | 1 |
If you had a thousand dollars to spend, do you think investing it in the stock market would be a good or bad idea?
| Good idea | Bad idea | DEPENDS(vol.) | No opinion | |
|---|---|---|---|---|
| National Adults | ||||
| 1999 Oct 21-24 | 51% | 44 | 2 | 3 |
| 1999 Sep 10-14 | 60% | 33 | 3 | 4 |
| 1999 June 4-5 | 60% | 34 | 3 | 3 |
| 1999 Mar 12-14 | 59% | 35 | 3 | 3 |
| 1998 Sep 1 | 46% | 48 | 3 | 3 |
| 1998 Apr 17-19 | 65% | 28 | 4 | 3 |
| 1997 Oct 30(^) | 46% | 47 | 3 | 4 |
| 1997 Oct 27 | 53% | 43 | 1 | 9 |
| 1997 Jul 25-27 | 62% | 33 | 1 | 4 |
| 1994 Mar 9-10(^) | 38% | 46 | 9 | 7 |
| 1990 Feb (^) | 26% | 68 | 2 | 4 |
| Stockholders | ||||
| 1999 Oct 21-24 | 63% | 35 | 1 | 1 |
| 1999 Sep 10-14 | 69% | 26 | 3 | 2 |
| 1999 June 4-5 | 72% | 23 | 3 | 2 |
| 1999 Mar 12-14 | 71% | 25 | 2 | 2 |
| 1998 Sep 1 | 60% | 34 | 3 | 3 |
| 1998 Apr 17-19 | 82% | 14 | 3 | 1 |
| 1997 Oct 30(^) | 66% | 28 | 4 | 2 |
| 1997 Oct 27 | 66% | 33 | -- | 1 |
| 1997 Jul 25-27 | 80% | 19 | -- | 1 |
| 1994 Mar 9-10(^) | 57% | 30 | 10 | 3 |
| 1990 Feb (^) | -- | -- | -- | -- |
| Non-Stockholders | ||||
| 1999 Oct 21-24 | 33% | 57 | 4 | 6 |
| 1999 Sep 10-14 | 46% | 44 | 3 | 7 |
| 1999 June 4-5 | 43% | 49 | 2 | 6 |
| 1999 Mar 12-14 | 39% | 53 | 4 | 4 |
| 1998 Sep 1 | 25% | 70 | 1 | 4 |
| 1998 Apr 17-19 | 48% | 43 | 3 | 6 |
| 1997 Oct 30(^) | 27% | 64 | 3 | 6 |
| 1997 Oct 27 | 39% | 55 | 1 | 5 |
| 1997 Jul 25-27 | 48% | 45 | 1 | 9 |
| 1994 Mar 9-10(^) | 27% | 55 | 9 | 10 |
| 1990 Feb (^) | -- | -- | -- | -- |
| ^ SOURCE: CNN/Time |
||||
Thinking about the U.S. stock market, do you think stock prices will go higher or lower in the next six months?
| Higher | Lower | STAY THE SAME (vol.) | No opinion | |
|---|---|---|---|---|
| 1999 Oct 21-24 | 50% | 37 | 3 | 10 |
| 1999 Mar 12-14 | 61% | 29 | 3 | 7 |
| 1998 Aug 21-23 | 45% | 38 | 5 | 12 |
| 1998 Apr 17-19 | 66% | 23 | 3 | 8 |
| 1997 Nov 6-9 | 62% | 25 | 4 | 9 |
| 1946 Sep 13-18 | 27% | 24 | -- | 49 |
| 1937 Sep 18-23 | 68% | 32 | -- | -- |
February 15, 1999-Sample size = 1585 national adults. Margin of error = ± 3 percentage points
At present, do you happen to own any investment stocks in your own name that are listed on any stock exchange?
| Yes | No | No opinion | |
|---|---|---|---|
| 1955 Feb 15 | 8% | 91 | 2 |