U.S. households are expected to remain the second‑largest net buyers of equities this year—purchasing an estimated $425 billion—according to Goldman Sachs. Only corporations, at $675 billion, are projected to buy more.

Why Household Demand Matters

Goldman's analysts emphasize that retail flows are critical to sustaining market momentum:

• 38% Direct Ownership: Households directly hold over a third of U.S. equities, and control an even larger share when including mutual funds and ETFs.

• Record Allocations: Americans now allocate 49% of their financial assets to stocks—the highest on record, surpassing the dot‑com peak of 2000. By contrast, households in Japan and the Euro Area dedicate just 13% and 10%, respectively.

Retail Trading Remains Robust

Despite a still‑negative Sentiment Indicator (-1.2), U.S. equities have rallied 21% from their April lows. Goldman's trading desk estimates that retail trading alone contributed $20 billion of net buying over the past three months.

To see which names are capturing the most retail attention today, check out the real‑time leaders in volume and turnover:
Market - Most Active API market-most-active

Macro Tailwinds for Continued Buying

Goldman points to several favorable conditions supporting household demand:

1. Strong Balance Sheets: Savings remain elevated, mitigating forced equity sales.

2. Low Unemployment: Jobless rates are near historic lows, keeping income and confidence high.

3. Stable Rates: While the Fed's policy stance remains watchful, rates have not spiked enough to trigger widespread outflows.

Moreover, 401(k) contributions drive roughly $500 billion in annual equity demand, with average equity allocations in these plans rising to 71% in 2022 from 66% in 2013.

Valuation Context: U.S. Equities vs. Peers

Even as household allocations soar, U.S. equities trade at a premium relative to other regions. For a snapshot of how U.S. sector valuations compare globally, explore the Sector PE Ratio Market Overview API. sector-pe-ratio

Investor Takeaways:

• Lean Into Retail Trends: With households set to buy, monitor stocks with high retail participation via the Market - Most Active API.

• Watch Macro Indicators: Any deterioration in consumer balance sheets, rising unemployment, or a sharp rate upswing could reverse this buying tide.

• Valuation Discipline: Despite heavy flows, ensure portfolio balance by checking sector valuations against historical norms using the Sector PE Ratio API.

U.S. households' deep equity commitments suggest that retail demand will remain a powerful force supporting markets through 2025—provided the macro backdrop stays favorable.