cross-posted from: https://lemmy.world/post/13724318

Key Points

• The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter.
• All of the gains came from stock holdings thanks to an end-of-year rally.
• Economists say the rising stock market is giving an added boost to consumer spending through what is known as the “wealth effect.”

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The wealth of the top 1% hit a record $44.6 trillion at the end of the fourth quarter, as an end-of-year stock rally lifted their portfolios, according to new data from the Federal Reserve.

The total net worth of the top 1%, defined by the Fed as those with wealth over $11 million, increased by $2 trillion in the fourth quarter. All of the gains came from their stock holdings. The value of corporate equities and mutual fund shares held by the top 1% surged to $19.7 trillion from $17.65 trillion the previous quarter.

While their real estate values went up slightly, the value of their privately held businesses declined, essentially canceling out all other gains outside of stocks.