The American household wealth rose to a record of approximately $156.2 trillion by the end of 2023 thanks to a rising stock market that offset a decline in the real estate marketthe Federal Reserve said Thursday.
Household net worth rose about 3.2% in the October-December period from $151.4 trillion at the end of the third quarter, the Federal Reserve said in its quarterly summary of household and business balance sheets. companies.
The value of stocks held directly or indirectly through mutual funds, life insurance policies or retirement accounts increased by $4.7 trillion to $47.6 trillion from $42.9 trillionsaid the Federal Reserve.
In the fourth quarter of 2023, the benchmark Standard & Poor’s 500 index delivered a total return, including reinvested dividends, of 11.7% and market gains continued into early 2024, with stocks closing February at all-time highs.
Stock market gains offset real estate values that declined by $600 million to about $49 trillion after rising in the previous two quarters.
Meanwhile, Households took advantage of higher interest rates offered on savings accounts and certificates of deposit and money market mutual funds. Total “deposit” account balances rose by nearly $270 billion to $18 trillion, breaking a record-long six-quarter streak of declines.
Still, deposits as a percentage of total household net worth fell to 11.5% – the lowest level in four years – while the share of stocks rose above 30%.
Source: Ambito
