In Real Estate We Trust But Not Feeling John Bull

Key Insights from Gallup on American Investment Preferences

There is an intriguing disconnect between the general population’s sentiment and the seemingly robust economy. While the stock market reaches all-time highs, inflating the wealth of the top 10%—who own 87% of all corporate equities—many Americans, the majority of whom have limited to no stock holdings, do not feel wealthier due to relatively soft and sluggish housing prices.

Additionally, Republicans prefer gold over other investments by a 20% margin compared to Democrats, reflecting the dystopian outlook held by some within the MAGA movement.

Key Takeaways:

• Stock Ownership Disparity: Stock holdings are heavily concentrated among the wealthiest Americans. The top 0.1% owns 23.4% of corporate equities, the top 1% controls nearly half of the stock market, while the bottom 90% hold only 13.12% of corporate equity wealth.
• Real Estate Preference: Americans consider real estate the best long-term investment among six options, with 36% favoring it. Stocks or mutual funds are chosen by 22%, gold by 18%, and savings accounts or CDs by 13%.
• Low Confidence in Bonds and Cryptocurrency: Bonds and cryptocurrency are viewed as the best long-term investments by relatively few Americans, at 4% and 3%, respectively.
• Income Level Investment Perceptions: Across all income levels, Americans perceive real estate as a superior investment. However, opinions diverge on the value of other investments, particularly stocks and savings accounts.
• Political Differences on Gold’s Value: There is a marked political divide in the perception of gold’s value. Currently, 27% of Republicans consider gold the best investment, compared with 7% of Democrats and 18% of independents.

Gallup has asked Americans to choose among real estate, stocks, gold, savings accounts and bonds as the best investment. Cryptocurrency was added as an option in 2022.

Real estate has topped the list each year since 2014, with between 30% and 45% (in 2022) selecting it. In 2013, real estate essentially tied for first with gold and stocks; it trailed gold in 2011 and 2012.

Americans’ historical tendency to choose real estate as the best long-term investment is consistent with their usual expectations of rising local home values.  – Gallup