5 Stocks Catering to the Super Wealthy
The story of Jay Gatsby is nearly a century old, but his lavish lifestyle is more relevant than ever. The Federal Reserve’s attempt at a wealth effect has been successful for some Americans, but the benefits are not being felt by the majority of the nation.
The divide between people who can afford to host extravagant parties every weekend and those who can’t is at its widest since the Roaring Twenties. According to a new report from The Associated Press, the wealthiest 1 percent of Americans earned more than 19 percent of the nation’s household income last year — that is the biggest slice of the pie since 1928. Furthermore, the top 10 percent of households obtained a record-breaking 48.2 percent of total earnings in 2012.
With the help of a stock market that has more than doubled since the lows of the financial crisis, the top 1 percent of American households had pretax income of almost $400,000 last year, while the top 10 percent had income above $114,000. These figures include wages as well as capital gains from stocks and other investments.
Since stocks are most widely held among the wealthiest households, most Americans have been experiencing a less robust recovery. Yet there are several stocks investors may want to consider in order to benefit from the uneven wealth effect taking place. Here’s a look at five stocks that cater to the wealthy.