Augusta Saraiva of Bloomberg reports that since Donald Trump’s victory in the Nov. 5th election, the S&P 500 has climbed to new highs amid expectations that the president-elect will enact pro-business policies. Saraiva writes:
US household wealth rose to a fresh record in the third quarter, fueled by a stock-market rally ahead of the presidential election.
Household net worth increased nearly $4.8 trillion, or 2.9% from the prior quarter, to $168.8 trillion, a Federal Reserve report showed Thursday. The value of Americans’ equity holdings rose $3.8 trillion. The value of real estate eased by almost $200 billion after sizable advances in the first half of the year.
In the third quarter, investors benefited from a stock-market rally in anticipation of interest-rate cuts from the Fed and that Donald Trump would return to the White House next year. […]
Business debt outstanding increased at a 3% annualized rate, while consumer non-mortgage credit rose at a 2.5% pace. Mortgage debt climbed 3.1% for a second quarter. In the public sector, state and local government debt grew at a slower rate.
Household liquidity picked up to a record. Deposits held by households and nonprofit organizations, which includes savings and checking accounts and money market funds, rose by $379.5 billion to $18.9 trillion.
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