According to BlockBeats, strategists at Goldman Sachs have indicated that U.S. households will play a crucial role in supporting the stock market through their growing influence in retirement savings. The research team, led by David Kostin, anticipates that American households will directly purchase $425 billion worth of U.S. stocks this year, second only to corporations, which are expected to buy $675 billion.
The report highlights that the TINA (There Is No Alternative) trade remains active and performing well within U.S. retirement accounts. This term refers to the lack of alternative assets besides stocks. The strategists noted that the increasing proportion of 401(k) plans in total retirement savings and their growing focus on equities make these investments more significant for the stock market.
The average allocation of stocks in retirement accounts has risen from 66% in 2013 to 71% in 2022. Among savers in their 20s, this allocation reaches as high as 90%.