.jpg)
The stock market’s rally is being powered by a familiar force—American households piling into equities, particularly through their retirement accounts. Goldman Sachs says the “TINA trade”—the idea that "There Is No Alternative" to stocks—is very much alive.
This investment narrative had lost some steam in recent years as interest rates climbed, making bonds a more attractive option for the first time in a long while. However, with equity enthusiasm surging once again—especially among younger investors—TINA appears to be staging a strong comeback.
Goldman’s strategists note that retirement accounts, such as 401(k)s, are playing a significant role. U.S. investors now hold a staggering $8.9 trillion in stocks through these accounts. As of 2013, approximately 66% of 401(k) assets were invested in stocks. By 2022, that jumped to 71%. Among those in their 20s, the average equity allocation is a striking 90%.
Retail traders have also been active, purchasing approximately $20 billion in net stocks over the past three months. Goldman believes this retail and retirement-fueled demand creates a solid foundation for continued market gains.
According to their data, U.S. households have never been more exposed to equities—49% of their total financial assets are now in stocks. That kind of exposure is a clear vote of confidence in the market, and Goldman forecasts that households could invest an additional $425 billion directly in equities this year.
This surge in buying activity is one of the reasons Goldman recently upgraded its outlook for the S&P 500. They now expect it to reach 6,500 over the next 12 months, signaling approximately a 7% upside from current levels.
But the bank also offers a note of caution: most of this demand is coming from the wealthiest Americans. The top 10% hold 87% of all equities, and the top 1% has been the main driver of equity accumulation for the past three decades.
Still, for now, the TINA narrative appears to be driving a bullish cycle, and Goldman doesn’t see it ending anytime soon.
Whispers from a Quiet Investor: The Answer to Successful Investing through Cunning Intelligence. Kindle $9.99, Amazon paperback $10.99.
