Dec. 10 (Bloomberg) — Household wealth in the U.S. increased by $2.67 trillion in the third quarter as stock prices and home values climbed, and revised data showed Americans have a larger hurdle to overcome.
It’s because household wealth has an almost eerily high correlation to the S&P 500. Going back to 4Q’03, the correlation is 0.92. I also did a regression, here’s the chart:
So this doesn’t really tell us anything we didn’t already know.