From CNBC: 2024-03-28 13:57:02

The wealth of the top 1% reached a record $44.6 trillion in the fourth quarter, with a $2 trillion increase in net worth, driven by a stock market rally. Real estate values rose slightly, while privately held business values declined. Since 2020, the top 1% have seen a 49% wealth increase.

The surge in stock market values has boosted consumer spending through the “wealth effect,” where stock gains increase confidence and spending. The top 10% of Americans own 87% of individually held stocks and mutual funds, while the top 1% own half of all individually held stocks, creating a top-heavy ownership structure.

Economists note that rising stock market benefits mainly the wealthy, as middle-class and lower-income Americans rely more on wages and home values for wealth. The top 1% accounted for 30% of the nation’s wealth in the fourth quarter, while the top 10% held 67% of all wealth. The wealth gap has returned to pre-pandemic levels despite slight declines in 2021 and 2022.

With the S&P 500 up 10% in 2023, the wealth of the top 1% is expected to surpass the fourth quarter record. Wealthy households drive approximately two-thirds of consumer spending, highlighting the impact of stock market gains on economic growth. Economists emphasize the importance of a diversified wealth structure to ensure economic stability.



Read more at CNBC: Wealth of the 1% hits a record $44 trillion