Economists say the rising stock market is giving an added boost to consumer spending through what is known as the "wealth effect."

Key Points

  • The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter.
  • All of the gains came from stock holdings thanks to an end-of-year rally.
  • Economists say the rising stock market is giving an added boost to consumer spending through what is known as the “wealth effect.”

The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter, as an end-of-year stock rally lifted their portfolios, according to new data from the Federal Reserve.

The total net worth of the top 1%, defined by the Fed as those with wealth over $11 million, increased by $2 trillion in the fourth quarter. All of the gains came from their stock holdings. The value of corporate equities and mutual fund shares held by the top 1% surged to $19.7 trillion from $17.65 trillion the previous quarter.

While their real estate values went up slightly, the value of their privately held businesses declined, essentially canceling out all other gains outside of stocks.

  • @3volver
    55•8 months ago

    Thanks Reagan, still waiting for it to trickle down you fucking liar.

        • @[email protected]
          2•8 months ago

          No they have really good food and also real people live there too.

          Disproportionately well armed real people, which sounds like a solution to me.

            • @[email protected]
              1•8 months ago

              Ask a meteorologist, but that’s my only objection. If they didn’t want fallout in their backyards, I guess they would’ve fixed it themselves at some point in the last century.

    • @Etterra
      2•8 months ago

      If I ever get a time machine, I’ve got a baby to go delete real quick.