On June 16, Goldman Sachs strategists stated that U.S. households will provide key support for the stock market through their increasingly growing retirement savings influence. The research team led by David Kostin expects U.S. households to directly purchase $425 billion worth of U.S. stocks this year, second only to corporations' $675 billion in stock purchases.
They wrote in a report: "The TINA trade remains active and performing well in U.S. retirement accounts." TINA (There Is No Alternative) refers to the lack of alternative assets besides stocks. The strategists said that the growing proportion of 401(k) plans in total retirement savings and their increasing focus on stocks mean these investments are now more important to the stock market.
The average stock allocation in retirement accounts has grown from 66% in 2013 to 71% in 2022. Among savers in their 20s, this proportion reaches as high as 90%. (Jinshi)
