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.

    • melpomenesclevage@lemm.ee
      11·
      9 months ago

      By whom? I can’t tell the fucking difference, its most if the same guys. Explain to me how its not the same thing.

      Hell, in various time periods, its been official. The state itself has recognized them, used them for law enforcement, or offered members sweetheart deals during recruitment.

          • ILikeBoobies@lemmy.ca
            1·
            9 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