There are a number of reasons for this:
- Historically, low interest rates encourage savers to put their savings into the market to keep pace with inflation.
- The Federal Reserve’s policy of quantitative easing artificially lifted asset prices.
- In the U.S., the investor class is made up of wealthier Americans.
- The market nearly tripled in value from 2007-2016
- The Great Recession was caused by toxic home mortgages which lead to many foreclosures. Homes make up a disproportionate percentage (around 60%) of most American’s net-worth.