Congratulations! We're All Rich*

March 10, 2017


Good news!  We're rich!  That's what recent analysis concluded with the stock market increases during the last three months of 2016. The Federal Reserve said the nation’s household wealth increased 2.3%, stock and mutual fund portfolios jumped $728 billion in value and home values rose $557 billion; all records. That's good because typically an increase in household wealth can boost overall spending and help accelerate the growth of the economy. However this may not be the case. Being that the wealthiest 10% of Americans own 80% of the stock market and younger Americans are less likely to be homeowners than previous generations. That wealth effect of putting money into the economy may not happen as these record gains are more concentrated among richer and older households, which are less likely to spend more.

SOURCE: Newser

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