1107 days ago • Posted by Charles-Henry Monchau
The weight of equities in US household total assets has risen to record-highs - might not be a negative, quite the opposite.
Obviously, this has something to do with equity markets reaching fresh all-time highs. But it also means US households are profiting from the climb. Together with strong real estate markets and historically low debt service ratios, this puts them in a strong financial position; especially if the labor market continues to improve significantly from here - i.e this high allocation to equities should NOT be taken as a negative sign as this creates a positive a positive feedback loop for the US economy (remember, almost 80% of GDP comes from the consumer)
Chart source: Jeroen Blokland (Robeco)
