Surge in wealth from stocks and other financial assets may be sending a dangerous signal for the economy

ArticleDeflationMarch 21, 2018 - 6:39:50 AM

Total net worth of $98.75 trillion is now 6.79 times the $14.55 trillion in disposable income, a new high that could be signaling trouble.

Nine years into the second-longest bull market run in history, the level of total net worth compared with income has reached a record, according to Joe LaVorgna, chief economist for the Americas at Natixis, citing Federal Reserve data.

Since the Great Recession ended in June 2009, the disparity between net worth and income has soared, attributable in large part to the growth in financial assets, which have increased by $33.9 trillion, compared with $10.4 trillion in nonfinancial assets...

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