Surging stock market powers US wealth to $96.2 trillion

[Free Vulcan]

A healthy gain in the stock market and steadily increasing home prices boosted Americans’ household wealth this spring, a trend that likely adds to the nation’s inequality.

The Federal Reserve said that Americans’ net worth rose 1.8 percent to $96.2 trillion in the April-June quarter. Stock portfolios and mutual funds jumped $1.1 trillion. Home values climbed $600 billion.

Read more at: https://www.washingtonpost.com/politics/surging-stock-market-powers-us-wealth-to-962-trillion/2017/09/21/ca953ace-9ee6-11e7-b2a7-bc70b6f98089_story.html

[ABX]

Unfortunately much of this has been due to the rapid decline of the dollar and the Fed still buying market backed bonds (buying their own debt)

[InHeavenThereIsNoBeer]

Until you sell it and turn it into real "stuff", it's not wealth, just numbers in a spreadsheet.

[Elderberry]

It's sure been nice. My 401K has grown 13.54% so far this year.

[InHeavenThereIsNoBeer]

Unfortunately much of this has been due to the rapid decline of the dollar and the Fed still buying market backed bonds (buying their own debt)

Technically, the Fed has been buying bonds, but effectively only rolling over (buying new bonds as old ones mature) since 2014, not adding to their positions. Yesterday they announced that they will stop rolling over next month.

Now the question is if other central banks will step in to take their place, or if assets will move to reasonable valuations.