Say Hi to New Highs
There has not been an onslaught of great news this year to be honest. Looking back, 2020 will truly be one for the history books. Health is one thing but something the coronavirus has not been able to stop is the surge in stock market valuations across the world.
It is true that there are many people struggling to bring in some cash, pay the bills and/or get back on their feet. Although, according to the Federal Reserve figures released on Friday, total American net worth rose to $123.5 trillion in the third quarter, marking a new record.
Compared to last year, this marks a $3.8 trillion increase. On a percentage basis, that’s an astounding 7.6% growth from the same period a year before.
A big portion of these gains are credited to the robust rally seen on Wall Street. With the S&P 500 reaching new highs, U.S. personal equity holdings jumped up a monster $2.8 trillion. At the same time, Real Estate values added another $400 billion in net worth for Americans as properties outside the big cities got a boost as people fled the highly populated areas of the country.
Has this virus benefited you after all?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.