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Household net worth rises to $ 136.9 trillion due to sharp rise in stock market

US dollars are counted at banks in Westminster, Colorado.

Rick Will King | Reuters

As 2021 began and the effects of the Covid-19 pandemic began to diminish, US households’ net worth reached new heights.

Mainly thanks to the surge Stock marketAccording to the report, the total balance sheet of households and nonprofits in the first quarter increased to $ 136.9 trillion, up 3.8% from the end of 2020. Federal Reserve Data Released on thursday

Of that total, $ 3.2 trillion was due to equity holdings and another $ 1 trillion was due to the continued rise in real estate value. S & P 500 expects investors to continue to increase corporate profits Relaxing fiscal and monetary policy We also make speculative bets on so-called meme stocks.

From a historical point of view, household net worth has almost doubled from what it was ten years ago, as the country still escapes the suffering of the financial crisis.

Household debt totaled $ 16.9 trillion in the quarter, rising at a rate of 6.5%, the fastest pace dating back to 2006.

The rise in household value is due to the combined growth rate of private and government debt, which fell from 6.3% in the fourth quarter of 2020 to 5.8%, significantly lower than in the first quarter of last year. At that time, government spending sent trillions of dollars into the economy, causing debt growth at the 10.8% level, followed by a 25.6% increase in the second quarter.

Federal debt increased 6.5% in the first quarter, well below 10.9% in the last three months of 2020, but still boosting total debt levels at the end of the quarter to just below $ 28 trillion. Is enough. State and local government debt increased at a rate of 3.8% from 1.6% in the previous quarter.

After a significant slowdown in late 2020, business debt recovered again, rising at a pace of 4.4%.

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Household net worth rises to $ 136.9 trillion due to sharp rise in stock market

Source link Household net worth rises to $ 136.9 trillion due to sharp rise in stock market

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