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Not owning shares

Most households in the UK don't own equities. Many are correct not to do so
Not owning shares

Should you own equities at all? For some of you, the answer is: no.

Certainly, most people don’t own them. The ONS says that only 12 per cent of households own shares directly, and only 5 per cent own or unit investment trusts – although many more have pensions.

There are many reasons for this. One is simply that people can’t afford them: only one household in six has net financial wealth (excluding pensions) of more than £100,000. Another is a lack of knowledge. And another is loss aversion: those who would get much more pain from (say) a 10 per cent loss than pleasure from a 10 per cent gain won't see equities as a good deal.

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