Goldman Sachs: US Household and Institutional Equity Allocation Nears 65%, Hits Record High

TechFlow News, July 27, Goldman Sachs data shows that the equity allocation of US households, pensions, insurance institutions, and investment funds has approached 65%, hitting a record high, up about 31 percentage points from the low after the 2008 financial crisis, and surpassing the peak during the internet bubble period. The equity allocation of similar investors in G10 countries has also risen to about 57%, about 12 percentage points higher than the previous cycle high.

This indicates that the reliance of global household and institutional wealth on the stock market has significantly deepened. High positions can strengthen the wealth effect during the upward phase, but also mean that household consumption and institutional balance sheets are more sensitive to market pullbacks, with the potential space for incremental buying relatively narrowed. However, record-high positions themselves are not a top signal; this still needs to be judged in combination with valuation, earnings, and capital flows.