The total value of financial assets in the private sector in the United States was 6.7 times the gross domestic product of the United States, a new record.
This ratio, which compares the combined value of stocks, bonds, deposits and other financial instruments held outside the government to annual gross domestic product, exceeds the previous peak of 6.3 times set in 2021.
The gap between Wall Street and Main Street is at a record high
According to Al Qubaisi’s letter, the percentage has doubled since the 1970s. When asset values rise faster than wages, gains trickle down For investors who have capital.
A ratio of 6.7x shows that the private sector owns approximately $7 of financial instruments for every dollar of US output.
“When financial assets outpace the real economy, the rich get richer, and workers fall behind,” the analysts wrote. “The wealth gap has never been wider.”
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Wealthy investors are doubling their investments in stocks
At the same time, determining portfolio positioning among high net worth individuals Continuation signals Tendency towards risky assets. Al Qubaisi’s speech indicated that equity allocations rose to 65% of the total portfolios, which is the highest level since December 2021.
This represents a 7-point increase since 2023 and puts the current situation just below the peak of 66% seen during the 2021 meme stock surge.
“By comparison, the pandemic low in 2020 was 54%, while the long-term average is about 57%.” mail He added.
Analysts added that cash holdings fell to 10%, the lowest level since September 2018, while exposure to bonds fell to 18%.
This shift indicates that investors are increasingly wealthy Concentrated in stocks This reflects the high appetite for risk and continued confidence in the financial markets.
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this post Private financial assets in the United States hit a record 6.7 times GDP as the wealth gap widens appeared first on BeInCrypto.
