Rising Stocks, Home Values Driving American Household Wealth
$DIA, $SPY, $QQQ, $VXX
Rising stock prices and steady increases in home values powered American household wealth to $96.9-T, the Fed said Thursday.
US wealth has made a remarkable comeback since the Great Recession, when it dove more than $10-T to $56.2-T.
The Fed’s latest figures come as Congress is considering a tax cut plan that would reduce taxes on corporations and benefits all American taxpayers.
The Fed’s Thursday report shows that US corporations currently have $2.4-T in cash.
The Trump Administration and GOP leaders in Congress argue that cutting corporate taxes will encourage companies to spend more on machinery, computers and other equipment. Those investments, in turn, should make workers more productive and lead to higher wages.
And opponents of the corporate tax cut also argue that companies’ huge cash stockpiles, which have grown nearly 16% since Y 2015 demonstrate that businesses already have the money they need to invest.
Supporters respond that a tax cut will still encourage business spending by making future investment more profitable.
What you need to know: US net worth rose $1.7-T in Q-3 of Y 2017, extending a steady upward march in American wealth after the Great Recession eliminated about 17% of it in Y 2008.
Friday, the US major stock market indexes finished at: DJIA +117.68 at 24329.16, NAS Comp +27.24 at 6840.08, S&P 500 +14.52 at 2651.50
Volume: Trade on NYSE came in at 740-M/shares exchanged.
- NAS Comp +27.1% YTD
- DJIA +23.1% YTD
- S&P 500 +18.4% YTD
- Russell 2000 +12.1% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Very Bullish (0.64)||Very Bullish (0.51)||Very Bullish (0.73)||Very Bullish (0.67)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Bullish (0.49)||Bullish (0.46)||Bullish (0.44)||Very Bullish (0.58)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Very Bullish (0.50)||Neutral (0.07)||Very Bullish (0.77)||Very Bullish (0.67)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Bearish (-0.33)||Neutral (-0.23)||Bearish (-0.46)||Bearish (-0.29)|
Have a terrific weekend.