Households in developed economies show wide variations in exposure to public markets. In the sample, the US tops the list, with 46 per cent of household financial assets held directly in listed equities and investment funds. Across the EU27, the average sits at 16 per cent, while the Netherlands, the birthplace of the modern stock market, records only 6 per cent.

These differences stem from tax policy, financial culture, and especially pension system design. When pension entitlements are added, Australia and the Netherlands—both with large funded retirement systems—jump above 50 per cent of household financial assets. In contrast, countries with pay‑as‑you‑go schemes such as France, Italy, and Spain see only modest changes.

In the UK, low stock‑market participation has sparked periodic worry. Efforts to build a share‑holding culture have not stopped the decline toward historically low levels of direct ownership. Excess household saving in cash and low‑yield accounts diverts funds from productive investment, while a visible stake in market returns can boost the wealth effect and spending.

A sharp market correction would reverse that effect. We welcome your thoughts at [email protected].