Goldman Sachs: U.S. Households Will Provide Key Support for the Stock Market

BlockBeats reported that on June 16, Goldman Sachs strategists stated that U.S. households are expected to provide critical support to the stock market through their growing influence via retirement savings. The research team led by David Kostin anticipates that U.S. households will directly purchase $425 billion worth of U.S. stocks this year, second only to corporations, which are projected to buy $675 billion worth of stocks.

In a report, they wrote: "The TINA trade remains active and performing well in U.S. retirement accounts." TINA (There Is No Alternative) refers to the lack of viable investment alternatives outside of equities. The strategists noted that the growing share of 401(k) plans in overall retirement savings and their increasing focus on equities signify that these investments are now more crucial to the stock market.

The average allocation to equities in retirement accounts has risen from 66% in 2013 to 71% in 2022. Among savers in their 20s, this proportion is as high as 90%. (Jin10)