By Kris Sayce – Port Phillip Insider (Australia) –
The Wall Street Journal reports:
‘U.S. household net worth climbed to a record $92.8 trillion in the fourth quarter of 2016, as the end-of-year surge in stocks and a steady climb in home prices added more than $2 trillion of wealth to household balance sheets.
‘The biggest contributor to the increase was the stock market, which added $728 billion to household balance sheets in the fourth quarter, according to the Federal Reserve’s quarterly financial accounts report.’
It’s an interesting observation.
In what has been one of the most ‘bearish’ of economic recoveries in living memory, US stocks have soared to record highs, US household worth has compounded higher, and US gross domestic product (GDP) has similarly grown.
Yet there’s still an underlying feeling that many Americans are no better off today than they were 10 years ago.
The ascendency of Donald J Trump to the US presidency is at the least anecdotal evidence of that claim.
The following chart shows how household net worth (white line and right-hand axis) has grown compared to US GDP (blue line and left-hand axis):