Thursday, March 8, 2012

Household Net Worth Rose by $1.2tn in Fourth Quarter

Household net worth grew by $1.2 trillion in the final quarter of 2011 to $58.5 trillion. The modest gain however was not enough to offset the $2.5 trillion decline that occurred in the third quarter. Household net worth had been recovering steadily since the beginning of 2009 until faltering in the third quarter of 2011. Household net worth has now only recovered to levels seen in late 2005.

The recovery in household net worth was led by a stock market recovery that began in October. The value of financial assets held by American households rose by $1.5 trillion. This trend is expected to continue early into this year, as the S&P is currently up 7.6% so far this year.

Home values proved the largest drag on recovering household wealth. The value of household real estate fell by $367.4 billion.

Corporate cash rose to a record $2.4 trillion.

Read the report.

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