Median US Household’s Wealth Has Declined by 40% Since 2007

Nominal US household wealth is at an all-time high. But my friend Marc Faber (publisher of the Gloom Boom & Doom Report) says that’s mostly an illusion. Below, Marc looks at the relationship between asset prices and US household wealth, and the effect of that relationship on the economy. It seems the wealth of the top 0.1% has vastly improved in recent decades (and the top 10% haven’t done at all badly). But “the median household’s or asset owner’s wealth has declined by close to 40% in real terms (adjusted by the CPI) from its peak in 2007.” Median household increases in wealth are also illusory because the main component of household wealth is pension fund assets (approximately US$ 22 trillion).
The Market Oracle

, , , , ,

Comments are closed.