Household Net Worth

Down again

The latest numbers for household net worth were just released by the Federal Reserve - let’s check them out:

As you can see, the numbers are down. That now makes two quarters of decreased net worth in a row!

That’s not surprising, given market performance, poor economic results, inflation, just to name a few headwinds. Generally, people may debate whether we are in a recession or not but they aren’t debating that things have been soft.

Net worth doesn’t usually decrease though, even when the market and other things are somewhat flat. That’s because people typically make money and save money.

So, for this indicator to go down, things have to be bad enough to counter those positive effects as well. Overall then, the first half of this year has been decidedly meh.