Long-term tracking of Federal Reserve financial accounts shows that the equity holding ratio of the top 1% has gradually risen from about 40% in the 1990s and has recently surpassed the 50% mark for the first time; this trend is highly synchronized with the long-term rise of the stock market, the expansion of equity compensation, and the reinvestment of capital gains.

In terms of capital pathways, equities and mutual funds have become the main vehicles for high-net-worth wealth, with rising asset prices directly amplifying the wealth effect of holding shares, further solidifying the structural shift of funds from labor income to capital income, concentrating more resources into financial assets that generate passive returns.

A similar path can be seen in the deepening phase of the U.S. capital market after the 1980s: the popularity of 401(k) plans and stock options briefly expanded the shareholding base, but ultimately the top tier re-established the gap through higher savings rates and reinvestment capabilities. Currently, equity wealth is in a phase of "high concentration + continuous reinforcement."

Essentially, this is a concentration of capital: when asset returns consistently exceed wage growth, wealth accumulation automatically tilts towards those who already hold capital, with pricing power and risk tolerance shifting towards the top tier.

ABAB News · Law of Cognition

Rising asset prices are, in themselves, a redistribution of wealth.
Once the shareholding ratio exceeds half, subsequent concentration often reinforces itself.
The growth rate difference between labor income and capital income determines the long-term wealth pattern.