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Property and stock prices have recovered after losing 3.7% in the last quarter after the Federal Reserve changed tact on rates. The move pushed Americans household wealth to record highs with a gain of 4.5% in the first  quarter of 2019.

Toll Brothers

U.S. household wealth increased in the first quarter to yet another record by $4.6 Trillion to nearly $108.6 trillion, a gain of 4.5% after falling 3.7% in Q4.

That is $8.4 Trillion dollars in gains in the last 12 months. The solid job market coupled with low inflation is improving Americans purchasing power, sustaining household spending which is the largest component of the U.S. economy.

Much can be traced back to the gains in the stock market since its lows after President Trump was elected November 2017 with solid gains in financial assets, the S&P 500, Nasdaq and Dow Jones Industrial indices are all hit record highs before the stock swoon in December. Property prices have also risen in this period

In the same period household debt rose by a 2.3% annual rate to $15.7 trillion in Q1, after a 2.8 rise in Q4 household debt. Mortgage debt rising 2.4% and consumer credit like student and car loans rising 4.3%. Nonfinancial business debt jumped by 6.6%.In the first quarter.

The value of equities jumped by $3.2 trillion and the value of real estate rose $387 billion. It should be noted that not share in it equally as only half of Americans have retirement accounts, and only 14% directly own stocks. Nonfinancial firms had $4.1 trillion in liquid assets in Q1 up from $3.9 trillion in Q4/ There was a 12% rise in value of corporate equity held by households

Balance Sheet of Households and Nonprofit Organizations, 1952 - 2019

HIGHLIGHTS OF US HOUSEHOLD WEALTH REPORT (1Q19)

From the Federal Reserve's financial accounts report, previously known as the flow of funds survey

US Household Net worth Q1 2019

US Assets and Liabilities Q1 19

US DPI Q1 19

Source: Federal Reserve

From The Traders Community News Desk 

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