The Party Continues To Rage As Stocks Continue to Soar
According to the Federal Reserve, the party continued in the United States during the third quarter of 2013, as US household net worth hit another all-time high.
According to the Fed, US household net worth increased $1.9 trillion to $77.3 trillion in Q3, with a big chunk of the gains coming from a stock market that continues to surge in value.
According to CNBC.com, residential real estate rose $428 billion in value between July and September, while corporate equities and mutual funds were up by about $917 billion.
Let's look at the increase in US household net worth over the previous years and quarters:
2009 - $59.0399 trillion
2010 - $63.4851 trillion
2011 - $64.8810 trillion
Q1 2012 - $67.3255 trillion
Q2 2012 - $67.3831 trillion
Q3 2012 - $69.6054 trillion
Q4 2012 - $70.9273 trillion
Q1 2013 - $73.9752 trillion
Q2 2013 - $75.3371 trillion
Q3 2013 - $77.2593 trillion
The real estate and equity markets continue to benefit from the Federal Reserve keeping interest rates at historically low levels. The big question, though, is how long these gains can be sustained.
Source: FederalReserve.com - Balance Sheet of Households and Nonprofit Organizations (*.pdf)
Filed under: General Knowledge