We use novel monthly security-level data on U.S. household portfolio holdings, flows, and returns to analyze asset demand across an extensive range of asset classes, including both public and private assets. Our dataset covers a broad range of households across the wealth distribution, notably including 439 billionaires. With these data, we study the portfolio rebalancing behavior of households. Our findings reveal a stark contrast: less affluent households sell U.S. equities amid market downturns, while ultra-high net worth (UHNW) households buy and contribute to stabilizing markets. Our framework paints a quantitative picture of U.S. households’ assets and rebalancing marked by a great deal of insensitivity and inertia throughout the distribution, even for UHNW households.
Xavier Gabaix, Harvard University
Ralph S. J. Koijen, University of Chicago, Booth School of Business
Federico Mainardi, University of Chicago, Booth School of Business
Sangmin Simon Oh, Columbia Business School
Motohiro Yogo, Princeton University