Stafford says less educated, smaller investors more likely to sell off stock and lock in losses during market downturn
"What Market Swings Mean for Inequality" - Wall Street Journal. 8/24/2015.
Because stock ownership in America is increasingly concentrated among higher income people - with 90% of all stocks owned by the wealthiest 10% - market busts have less negative impact on lower and middle-income families. But stock crashes do not necessarily reduce economic inequality, says Frank Stafford, since during a crash those with less education and smaller portfolios are more likely to sell off their stock and lock in their losses, while bigger and more savvy investors ride it out.