The managing director of Fundstrat Global Advisors discusses his perspective on the markets, the economy and the Federal Reserve’s handling of interest rate hikes.
The Federal Reserve found that American families experienced double-digit percentage increases in their real average wealth over the past three years.
The actual median family net worth for 2022 was $192,900. The Federal Reserve reported at that level on Wednesday as part of its comprehensive survey of consumer finances, which included a range of other data.
That represented a 37% increase over 2019’s pre-COVID level, when it was $141,100, and was the “largest three-year increase” in the history of the modern survey, according to the Fed survey.
The Federal Reserve found that American families experienced double-digit percentage increases in their real average wealth over the past three years. (iStock / iStock)
“Net improvements in economic performance, including rising real estate and corporate stock prices that were well above consumer price inflation, supported significant increases in median and median inflation-adjusted net worth … between 2019 and 2022,” the Fed said.
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In September, the month for which the most recent data is available, the consumer price index recorded a 0.4% increase month-over-month and a 3.7% increase year-over-year, as previously reported by FOX Business. The central bank is targeting 2% inflation, a level it has tried to reach through numerous interest rate hikes over the past year and a half.
The Fed also reported Wednesday that its survey found that median family income was $70,300 in 2021, up $2,400 from three years earlier.
The Fed also reported Wednesday that its survey found that median family income was $70,300 in 2021, up $2,400 from three years earlier. (Jonathan Ernst / File / Portal Photos)
“Income gains occurred across the income distribution but were largest toward the top, consistent with some increase in income inequality over this period,” the Fed noted.
Nearly 100% of American families owned assets — be they financial or nonfinancial — with the median holdings of these families totaling $332,600, according to the Central Bank. Their median value increased by 26% compared to 2019.
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The survey identified transaction accounts and retirement accounts as the most popular type of financial investments for Americans.
According to the Fed report, the share of families with retirement accounts increased 4% from 2019 to 54.3%. Their median holding was $86,900, which also represented an increase.
According to the Fed report, the share of families with retirement accounts increased 4% from 2019 to 54.3%. (iStock / iStock)
Meanwhile, 21% of families owned stocks directly. According to the survey, three years ago it was only 15%.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 4278 | -36.60 | -0.85% |
| Me: DJI | DOW JONES AVERAGE | 33414.17 | -250.91 | -0.75% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13186.175252 | -128.13 | -0.96% |
Among the non-financial assets, vehicles are the most common, it was also said.
When it comes to debt, more than three-quarters of families – 77.4% – reported some form of it. In 2019, according to the Fed, it was 76.7%.
The conditional average value was around $80,200.
The survey found that credit card debt “continues to be the most common type of debt,” according to the Fed. The average amount owned by a family was set at $2,700.
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