Monday Morning Optimism 12/11/2023

Record Household Wealth

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Median household net worth increased to the highest level on record in 2022, finally surpassing the previous high set in 2007 (yes, that’s after adjusting for inflation).

The increase was particularly rapid for those under the age of 35, for whom the median net worth increased more than 140% between 2019 and 2022.

Are their reasons for economic pessimism? Sure. High interest rates have put the housing market into a state of paralysis, and that’s a real pain for would-be homebuyers. Consumers are also flowing into credit card delinquency at an accelerating rate, and that’s especially painful with credit card interest rates at the highest level since at least 1994.

None of that changes the fact that the median household is wealthier than ever, employers continue to hire, and the odds of an imminent recession are as low as they’ve been in over a year.