Chart of the Day
US household wealth as a percentage of GDP went off the chart over the past year and a half. The trend should be a substantial tailwind due to the wealth effect where people tend to consume more when they are relatively better off. Today’s levels dwarf both those of the housing and dot com bubbles. It would take a very substantial stock and/or real estate crash to bring the ratio back towards its prior trend.
Source: Longview Economics
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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