Household net worth jumps to $98.7 trillion

By Economic IndicatorsFOXBusiness

Stock price swings have investors cautious

Caz Investments Chairman Christopher Zook and Independent Advisor Alliance CIO Chris Zaccarelli discuss their investment strategy under current market conditions.

The rallying stock market and the appreciation in home values is padding American’s pockets, with the net worth of households and nonprofits hitting $98.7 trillion in the fourth quarter, according to the Federal Reserve.

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In the third quarter of 2017, household net worth was $96.7 trillion.

Although equities have been volatile in so far in 2018, stocks climbed in the fourth quarter of 2017, with the S&P 500 adding 10%, according to Reuters. This contributed to increasing the value of indirectly and directly held equities by $1.3 trillion. The value of real estate rose by half a trillion during the quarter.

While net worth increased, so did debt. Household borrowing rose at a 5.2% annual rate during the fourth quarter, compared to a 3.5% growth rate in the third quarter.