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.

    • @givesomefucks@lemmy.worldEnglish
      -3•3 months ago

      What?

      I thought it would have been obvious I was referring to the Monica Lewinsky incident…

      But I’m sorry, it’s clear I’m not able to communicate to you in a way you understand.

      • Snot FlickermanEnglish
        3•3 months ago

        I’m not confused, I know exactly what you were referring to. You’ve decided to ignore half of what I said because you think I’m praising Clinton.

        Do you usually argue with people that are in general agreement with you?