During a recent visit to the Theodore Roosevelt Presidential Library in Medora, North Dakota, President Donald Trump announced substantial profits from his investments in various sectors, including cryptocurrency and major technology companies like Apple, Microsoft, and Nvidia. The revelations came as part of his annual financial disclosure report.
Trump commented on his financial success, attributing it to the overall rise in the stock market. “You know why I’m profiting? Because the stock market’s going up, everybody’s profiting,” he remarked to reporters.
The stock market has indeed seen impressive growth in the first half of the year, with notable gains reported across major indices. The Dow Jones Industrial Average experienced an 8.9% increase, marking its best performance for the first half of a year since 2021. Similarly, the S&P 500 rose by 9.6%, and the Nasdaq Composite achieved a remarkable 12.8% boost. The small-cap Russell 2000 soared nearly 22%, reflecting its best first-half performance since 1991.
However, the benefits of this market upswing have not been equally distributed among all U.S. households. Research indicates that capital gains from the stock market are predominantly concentrated among wealthier individuals. A Gallup Poll, frequently referenced by Treasury Secretary Scott Bessent, reveals that 38% of American households have no investment in equities. Among those participating in stock markets, ownership is significantly skewed toward the highest earners.
As of the first quarter of 2026, the top 1% of Americans owned approximately 50% of corporate equities and mutual fund shares, totaling around $27.64 trillion. Meanwhile, the top 10% holds over 87% of this wealth. In stark contrast, the bottom 50% of households possess just 1% of stock and mutual fund wealth, amounting to $590 billion. Mark Zandi, chief economist at Moody’s, emphasized the troubling nature of these disparities, stating, “Half of Americans effectively own no stocks.” He added that to reach the top 1%, an annual income exceeding $750,000 is necessary.
These dynamics, coupled with a burgeoning bull market, have only widened the existing wealth gap. Zandi remarked on the implications, noting that while the surging stock market greatly benefits the affluent, it does little for the majority of American citizens.
In response to the widening wealth gap, advocates, including Bessent, are supporting the introduction of “Trump Accounts”—investment plans aimed at providing wealth-building opportunities across various income levels. They argue that creating mechanisms to allow children, regardless of their background, to access capital market growth could help bridge the wealth divide. “We need to get capital into the pockets of every child born so that they can compound in the upside of SpaceX, in Alphabet, in all of our great companies, like everybody else in the market,” said Brad Gerstner, CEO of Altimeter Capital, who played a significant role in advocating for these investment accounts.
A recent analysis from consulting firm McKinsey projected that Trump Accounts could lead to an asset accumulation of between $80 billion and $900 billion for lower-wealth households over the next decade, contingent on participation rates, contribution patterns, and the sustained engagement of account holders.
