A Market That Keeps Growing—But Not for Everyone
The total value of publicly traded American companies has tripled in the past decade. Today, the U.S. stock market trails only Chinese real estate in total global asset class size. At first glance, this might seem like a rising tide lifting all boats. But under the surface, the numbers tell a different story.

The Stock Ownership Myth
Gallup reports that 61% of Americans own stocks. That sounds encouraging—until you realize most of that is through 401(k) plans, which replaced pensions over the past two decades. True ownership—where you actively hold and benefit from individual stocks or dividend payments—is far more exclusive.

In fact, the top 10% of Americans own 93% of all stocks. And the top 0.1%? Their slice is growing fastest of all. So while market headlines might suggest a booming wealth engine for all, the reality is that most Americans are passengers, not pilots.

The Retail Investing Mirage
Platforms like Robinhood have democratized access to stocks, but they’ve also encouraged behavior that resembles gambling more than investing. The average account size on Robinhood is under $5,000. Nearly half of its users have FICO scores below 650—suggesting many are financially strained.

Rather than building wealth, many users are trying to escape debt through market speculation. Apps that once introduced users to stock trading are now pushing them toward sports betting. The focus has shifted from long-term investing to quick wins, with very real risks.

Are You Really an Investor?
Even people who max out retirement accounts, diversify across ETFs, and dollar-cost average faithfully each month still earn most of their income from wages—not from capital gains or dividends. They’re workers with investments, not investors in the traditional sense.

This distinction matters. The myth that we’re all investors now supports corporate-friendly policies like deregulation, bailouts, and tax breaks—measures that disproportionately benefit those with substantial holdings.

How the “Investor Mindset” Can Backfire
Ironically, thinking of yourself as an investor might actually hurt your financial outcomes. Research shows that female investors, who trade less frequently, outperform male investors by roughly 1% annually. Over time, that gap adds up.

Companies know this too. Some offer perks like discounts or priority services to shareholders. If you own stock in Apple, Amazon, or Tesla, odds are you’re more likely to buy their products—creating a feedback loop that blends consumption and loyalty with investment.

Focus on Earning Power, Not Just Portfolio Tweaks
For most people, the best path to wealth isn’t optimizing your portfolio—it’s increasing your income. Whether that’s through career advancement, side hustles, or entrepreneurship, generating more income allows you to invest more over time.

Most of the ultra-wealthy didn’t just invest their way to riches. They built businesses, held high-paying roles, or inherited capital. Investing alone, especially with small sums, rarely leads to financial independence.

Why Concentrated Ownership Is a Policy Problem
When just a few people control most of the stocks, their influence spills over into housing, labor, and politics. For example, corporate landlords buying single-family homes can price out working families. But when challenged, defenders argue these moves protect “retirement accounts”—even though most Americans hold very little in those portfolios.

This concentration makes meaningful reform difficult. As long as the myth persists that everyone benefits from stock growth, efforts to level the playing field will face fierce resistance.

The Real Takeaway
Investing remains a useful tool for building long-term wealth—but it’s not the great equalizer it’s often portrayed to be. For the average American, the path to stability starts with boosting earnings, making smart financial decisions, and maintaining realistic expectations. It’s time we told the truth about investing—not as a silver bullet, but as one piece of a much larger financial puzzle.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

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