US Household Household Wealth is “at pretty dizzying levels right now”
$DIA, $SPY, $JPM
Americans’ wealth rose more than $2-T in Q-4 of last year, pushing further into record territory, thanks to The Trump Bull Market and rising property prices, data from the Fed showed Thursday.
According to the Quarterly Fed report, household net worth, meaning the value of all assets such as stocks and real estate minus liabilities like mortgage and credit-card debt rose to a record $98.746-T
American households saw their net worth rise to nearly 7X their disposable personal income in Y 2017 driving past pre-recession highs.
The ratio of wealth to income is “at pretty dizzying levels right now,” a JPMorgan Chase economist said.
But Americans are not saving as much, noting the bank saving rate was 3.74% for Y 2017, down from 5.98% a year earlier and 7.19% in Y 2015.
The current wealth-to-income level surpasses that seen in the run-up to earlier recessions.
Below are the highlights in the Quarterly Fed report released Thursday, as follows:
- Equities had a strong year in Y 2017, with the S&P 500 rising 19% and the DJIA gaining 25%, household wealth in the stock market climbed by $1.346-T in Q-4.
- The value of households’ real estate increased $511.2-B, reflecting continuing increases in home prices. US house prices rose 1.6% in Q-4, and rose 6.7% on the year.
- Households have $9.272-T in deposits, which include checking and savings accounts and certificates of deposit.
- Household debts rose at an annual rate of 5.2% in Q-4, with liabilities increasing by $208.6-B.
The Trump Goal: Make America Great Again, it is happening.