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.

    • ILikeBoobies@lemmy.ca
      11·
      8 months ago

      Do you realize what year it is?

      If you want to go back to colonial time then a state was just what Europe recognizes. Which meant that Africa, America, and most of Asia were up for taking. Convention changes

      • melpomenesclevage
        1·
        8 months ago

        Im pointing out that states are arbitrary bullshit and borders are arbitrary bullshit drawn in blood and trauma for the benefit of a gang of ultra-violent septegenarian kleptocrat incest babies who don’t know how to operate so much as a light switch in the real world, and solve every problem with violence and atrocities.

        Even the methods of defining them are stupid, and even when I offer the opportunity to change my mind, statists just keep repeating the same infantile bullshit I heard in first grade, with no elaboration, because they have absolutely no self awareness.

        So yes I am aware it’s the 21st century, and we as a species are too old for this shit.