The Wealth Effect - A Wealth of Common Sense

The Wealth Effect - A Wealth of Common Sense

The Economist has a good piece about the growing importance of the stock market on household balance sheets. Here’s the chart that matters: By the end of 2024, Americans owned stocks worth 170% of disposable income which is back at record levels and much higher than in previous decades. The worry here is that a sustained drop in stock prices could eventually have an impact on the real economy. I’m gonna both ...