The federal reserve released a report indicating that Americans' net worth dropped by $6.1 trillion in the second quarter of 2022 because of a decline in the stock market.
A report on Financial Accounts of the United States shows that the total net worth of households and nonprofit organizations was $143.8 trillion at the end of the second quarter. After falling to $150.01 trillion in the final quarter of 2021, this is the second straight quarterly decline to $149.9 trillion. As a result of the stock market decline, the value of household assets declined by $7.7 trillion, while the value of residential real estate rose by $1.46 trillion.
Stock holdings declined by $7.7 trillion in 2022, following a decline of $2.95 trillion in the first quarter. As of Sept. 9, the S&P 500 Index has declined by more than 15 percent year to date.
There has been an increase in real estate holdings of $1.46 trillion for the fourth consecutive quarter. A positive growth had been registered in real estate holdings in both 2020 and 2021.
“Directly and indirectly held corporate equities ($38.6 trillion) and household real estate ($41.2 trillion) were among the largest components of household net worth. Household debt (seasonally adjusted) was $18.6 trillion,” the report said.
12 Sep 2022
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