English | Italian

"Stocks' rising tide floats..." (Theme) The lastest total: 100+. you can read with page flip.

close
show list
related videos
HOMES NEPAL " Bishnumati River Cleaning Campaign Part 1 "
HOMES NEPAL " Bishnumati River Cleaning Campaign Part 2 "
What is NCET? Nevada's Center for Entrepreneurship and Technology Sizzle Video
By the Numbers: New Medicare and Medicaid DSH Calculations
List Of Fundraising Ideas 765-426-0975
Types Of Fundraising 765-426-0975
Continue »
Pop theme

Julia Pierson,Ebola usa,Hong Kong protesters,Ben Affleck,Tamil Nadu,Li Na,Ahmadzai,Michael Phelps,Times university rankings,Taliban

Related theme

Stocks' rising tide floats some boats higher than others


nonprofit organizations households

2014-02-28 12:12:34

We can learn a lot from anniversaries. Consider, if you will, the upcoming fifth anniversary of the bottom of the stock market, which hit its low on Mar. 9, 2009 as share prices plummeted and many holders ran screaming for the exit as predictions of the end of financial and investment life as we had known it filled the air.

Since then, U.S. stocks have almost tripled in value, according to the Wilshire 5000 index, the best measure of the total U.S. market. The value of Americans' home equity is up sharply, too—but nowhere near as much as stocks have risen. And thereby hangs a little-noticed tale of how people at or near the top of the economic food chain have profited substantially more from the stock and housing rebounds than other people have.

    No results related

    Add now

No, this isn't a screed about the evils, real and imagined, of income and wealth inequality. I'm just telling you what the numbers showed me when I decided to compare the rebound in homeowners' equity, which is the biggest source of wealth for broad swatches of Americans, with the rebound of stocks, which is the biggest source of wealth for only a relatively small handful of Americans, primarily those with high net worths. And, I assume, high incomes.

My wealth numbers come from the Federal Reserve's surveys of households' net worth. I've tweaked some of the Fed's statistics, which it releases quarterly, to estimate values for stocks on Market Bottom Day in 2009, and for stocks and home equity today. (You can find my methodology at the bottom of this column.)

The Fed excludes mutual funds and retirement accounts from its stock numbers, and I don't think that including them would change the numbers in any meaningful way, given how concentrated stock ownership is. For example, economist Robert Frank of Cornell estimates that 5% of Americans own 60% of all individual stocks.

And here we go.

When last I looked, the Wilshire 5000—the broadest measure of the U.S. stock market—was up about 190% from the bottom. During the same five-year period, the value of home equity has risen by about 40%. That's about $3 trillion, which isn't chopped liver. But it's little more than a third as much as the $8.8 trillion increase in Americans' holdings of stocks (as we're measuring them here).

Five years ago, at the stock market bottom, home equity, at $7.4 trillion, substantially exceeded the value of stocks owned by individuals ($4.4 trillion). Now, stocks are about $13.2 trillion, compared with $10.4 trillion of home equity.

After bottoming on Mar. 9, 2009, stocks roared up—by the end of the month, they had risen about 18%--and have pretty much kept going. Meanwhile, home equity  kept drifting down until the middle of 2012, when it finally turned upward.

Stocks have set one new high after another, while home equity is still down from its peak of $12.5 trillion in 2005. At the time, stocks were $8 trillion, about 65% of home equity. Now, stocks are more than 125% of home equity.

The bottom line: The rising tide in stocks and home equity is floating all boats—but the boats with lots of stocks in them are floating higher a lot quicker.

Where my numbers come from:

Stocks:

On Mar. 9, 2009, the Wilshire 5000 closed at 84.5% of its value on Mar. 30 of that year. So I subtracted 15% from the Fed's Mar. 30, 2009 stock ownership number to come up with a Mar. 9 number.

Similarly, I compared the Wilshire's value in late February with its value on Sept. 30, 2013, the date of the most recent Fed numbers. The Wilshire has risen about 10% since Sept. 30, so I added about 10% to the Fed's Sept. 30 number.

(I didn't take net purchases and sales of stocks, as reported by the Fed, into account; there are only so many numbers I can cope with without having my head explode.)

The Fed numbers include Americans' holdings of both U.S. and foreign stocks, while the Wilshire measures only U.S. stocks. But I doubt that a more elaborate estimation method than my simplistic use of the Wilshire 5000 would make a substantial difference in the findings.

House equity:

I used the Fed's Mar. 30, 2009 number as my starting point, because I have no idea how to estimate home equity value three weeks earlier. I came up with my current estimate for home equity by taking the Sept. 30, 2013 number, adding $700 billion, and rounding up. That $700 billion assumes that home equity has continued rising since last Sept. 30 at the same monthly rate that it increased between June 30 and Sept. 30.

My stock and equity numbers come from two lines--corporate equities, and owners' equity in household real estate—in the Fed's Balance Sheet of Households and Nonprofit Organizations.

View Original Article: Fortune
Disclaimer statement: The point of this article or rights belongs to the authors and publishers. We take no responsibility for the content of this article and legitimacy.
Do you have any questions about this article, please contact the news source Fortune.
Or contact us

Share

Write an article relevant this topic share on facebook share on twitter share on google plus share on oknews share on linkedin share on digg share on reddit share on newsvine share on pinterest share on netlog share on tumblr share on delicious send email print add to favorite

"Stocks' rising tide floats..." IN THE COMMUNITY!

Facebook
    Twitter

      PHOTO

        No results related
      Share one Sentence

      Manage my submission

      [{"b":"f","i":"1105314","t":"NEC Launches UNIVERGE\u00ae SV9000 Series Communications Servers","a":1},{"b":"b","i":"1214637","t":"Morning news headlines: Alice Gross murder probe continues, conference tackles Ebola threat","a":2},{"b":"b","i":"1214647","t":"CMITE Heads to Hard Rock Hotel & Casino Punta Cana in 2015","a":3},{"b":"a","i":"1275143","t":"Taxware Enterprise (TWE) 8.4 Achieves Oracle Validated Integration with Oracle E-Business Suite 12.2","a":4},{"b":"a","i":"1275148","t":"The 17th Annual 25 Influential Black Women in Business Awards Call for Nominations","a":5},{"b":"f","i":"1105642","t":"From the Publisher: Publishing in Pink for Breast Cancer Awareness","a":6},{"b":"c","i":"1841315","t":"Evonik Seeks Acquisitions for Health & Nutrition, Resource Units","a":7},{"b":"a","i":"1275130","t":"UPDATE: Man charged with robbing Wells Fargo bank in Maple Glen","a":8},{"b":"a","i":"1275135","t":"Burqa-clad women at Australia parliament to be separated from rest of public","a":9},{"b":"b","i":"1214583","t":"One, Inc. Announces New Release For Payment Processing and Reconciliation System, ProcessOne®","a":10},{"b":"b","i":"1214584","t":"Targus® Secures Patents Covering VersaVu\u2122 360° Rotational Screen","a":11},{"b":"b","i":"1214586","t":"HireIQ Named to CIO Review Magazine\u2019s 100 Most Promising Oracle Solutions Providers for 2014","a":12},{"b":"b","i":"1214594","t":"Master Apprenticeship Program Returns to Willet Hauser Architectural Glass","a":13},{"b":"b","i":"1214593","t":"Cogniserv, a DataBank Company, Awarded Texas Council of Competitive Government Services Contract","a":14},{"b":"a","i":"1275098","t":"bTrade Embraces National Cyber Security Awareness Month with Launch of New Blog Series","a":15},{"b":"a","i":"1275102","t":"Announcing the PenChecks Trust 2014 Expert Series","a":16},{"b":"a","i":"1275104","t":"Freeslate European Summit Highlights Best Practices in High Throughput Research and Data Management","a":17},{"b":"a","i":"1275107","t":"Hearthstone Homemade Debuts New Website for Homemade Dog Food Recipes and Supplements","a":18},{"b":"e","i":"513237","t":"Education Is Broken: Open Badges Might Be The Solution","a":19},{"b":"a","i":"1275083","t":"Caeleb Dressel Found New Outlook On Swimming During Five-Month Break (Morning Swim Show)","a":20},{"b":"f","i":"1105627","t":"Your Top Plays for Today","a":21},{"b":"c","i":"1841296","t":"UPI Almanac for Thursday, Oct. 2, 2014","a":22},{"b":"b","i":"1214545","t":"Virgin Money reveals shares detail","a":23},{"b":"a","i":"1275040","t":"Your Top Plays for Today","a":24},{"b":"b","i":"1214531","t":"Stars from "Twilight", "Sex and the City", "We're the Millers", "Major Crimes", "Storage Wars" and "CSI: Miami" to Play in Poker Tournament Benefiting Wells Bring Hope","a":25},{"b":"a","i":"1275045","t":"Former pilot reduces cost, weight of hydroplanes with composites","a":26},{"b":"a","i":"1275047","t":"Traba.co Releases Tool to Help Job Seekers Land Jobs Faster","a":27},{"b":"b","i":"1214514","t":"PDF Day Educates on Technology Everyone Uses But Few Think About","a":28},{"b":"a","i":"1275028","t":"Cricket: Queensland Bulls out run Ireland in Redland City one-dayer","a":29},{"b":"b","i":"1214479","t":"Timilon\u2019s Technology Receives Independent Certification And Approval From Lloyd\u2019s Register","a":30},{"b":"b","i":"1214483","t":"Meritex Announces Sale of Warehouse Building in Denver, Colorado","a":31},{"b":"a","i":"1274990","t":"Your Top Plays for Today","a":32},{"b":"a","i":"1274992","t":"Cricket: Queensland Bulls out run Ireland in Redland City one-dayer","a":33},{"b":"a","i":"1275006","t":"Cricket: Queensland Bulls out run Ireland in Redland City one-dayer","a":34},{"b":"b","i":"1214458","t":"Virgin Money reveals shares detail","a":35},{"b":"b","i":"1214469","t":"The Amazon Effect\r\nDistribution center will give Kenosha a national brand","a":36},{"b":"b","i":"1214470","t":"Virgin Money Plans to Raise $243 Million in U.K. Offering","a":37},{"b":"b","i":"1214472","t":"AA Market Move - Price Dropped","a":38},{"b":"b","i":"1214474","t":"AA Market Move - Price Dropped","a":39},{"b":"f","i":"1105575","t":"Industrial Logistics Robots: Market Shares, Strategies, and Forecasts, Worldwide, 2014 to 2020","a":40},{"b":"f","i":"1105511","t":"Your Top Plays for Today","a":41},{"b":"b","i":"1214438","t":"Honda Provides First Look of Formula 1 Power Unit","a":42},{"b":"f","i":"1105580","t":"Thursday's TV\/radio best bets","a":43},{"b":"a","i":"1274948","t":"Technology should be used to fight illiteracy, poverty: Super 30 mentor","a":44},{"b":"a","i":"1274950","t":"The Harvard Crimson","a":45},{"b":"a","i":"1274951","t":"The Harvard Crimson","a":46},{"b":"b","i":"1214409","t":"Featured Brokers","a":47},{"b":"c","i":"1841212","t":"Bank of Russia Didn\u2019t Intervene on Sept. 30 to Support Ruble","a":48},{"b":"c","i":"1841191","t":"Classes on law and liberty to be taught in Oklahoma City","a":49},{"b":"b","i":"1214362","t":"A Day To Reflect","a":50},{"b":"b","i":"1214376","t":"International Non-Violence Day 2014: The World at War in Numbers","a":51},{"b":"f","i":"1105499","t":"Note to our Denver Post readers","a":52},{"b":"a","i":"1274890","t":"Pioneer Expands Apple CarPlay-Compatible Lineup with Next Generation AppRadio 4 - Yahoo India Finance","a":53},{"b":"d","i":"898835","t":"LIVE: China tells America not to interfere in Hong Kong affairs as hacking group wages war on city government","a":54},{"b":"a","i":"1274867","t":"Toshiba Launches World's Smallest-class\u00a0Embedded NAND Flash Memory Products - Yahoo Finance Canada","a":55},{"b":"f","i":"1105595","t":"Minister promotes jobs in South East","a":56},{"b":"b","i":"1214339","t":"Today's Birthdays","a":57},{"b":"b","i":"1214340","t":"What's on in Manchester today: Thursday October 2, 2014","a":58},{"b":"b","i":"1214350","t":"Bollywood heartthrob Roshan warns fans against obsession","a":59},{"b":"b","i":"1214317","t":"Eisai Launches Anti-Cancer Agent Halaven in Australia","a":60},{"b":"a","i":"1274848","t":"Bill Gates Dedicates New Computer and Information Science Building","a":61},{"b":"c","i":"1841148","t":"Vertu Aster","a":62},{"b":"a","i":"1274814","t":"Home » NewHampshire.com » A&E","a":63},{"b":"a","i":"1274833","t":"China supports Hong Kong leader as pro-democracy protests escalate","a":64},{"b":"b","i":"1214287","t":"D.A. in Oklahoma to seek death penalty in beheading case","a":65},{"b":"b","i":"1214292","t":"Suddenlink and Viamcom talk about channel changes","a":66},{"b":"a","i":"1274790","t":"Broncos' Manning set to join exclusive club","a":67},{"b":"b","i":"1214266","t":"Steelers vs. Jaguars: Breaking Down Pittsburgh's Game Plan | Bleacher Report","a":68},{"b":"b","i":"1214265","t":"Steelers vs. Jaguars: Breaking Down Pittsburgh's Game Plan | Bleacher Report","a":69},{"b":"a","i":"1274774","t":"Khator praises ‘powerful’ undergrad experience","a":70},{"b":"a","i":"1274777","t":"October Issue of Car Biz Today Magazine Available Online","a":71},{"b":"a","i":"1274747","t":"Grand Opening: USC Annenberg unveils Wallis Annenberg Hall\r\n\t\t\t\t\t\t\t\t\t\t\tTransformative building fosters exploration and development of the digital future","a":72},{"b":"b","i":"1214224","t":"Vida Cannabis Names Todd Marcotte as Chief Marketing Officer","a":73},{"b":"a","i":"1274722","t":"Man sought after indecent exposure at Tempe church","a":74},{"b":"a","i":"1274706","t":"Women in Manufacturing forms first community chapter in Milwaukee","a":75},{"b":"f","i":"1105202","t":"ME-Newswire: Panasonic Launches Industry's Thinnest* Battery Connector Corresponding to 6 Ampere High Current Capacity, Contributing to Further Improvements in Mobile Devices","a":76},{"b":"c","i":"1841017","t":"Member of the Dallas Cowboys being investigated for sexual assault","a":77},{"b":"d","i":"898767","t":"Obama hails security deal signed with Afghanistan","a":78},{"b":"d","i":"898766","t":"Obama hails security deal signed with Afghanistan","a":79},{"b":"f","i":"1105102","t":"Alfuzosin How Can I Purchase - Alfuzosin Get Now Palm Bay","a":80},{"b":"f","i":"1105120","t":"Zyloprim online rx, Zyloprim xr, non presciption Zyloprim","a":81},{"b":"d","i":"898723","t":"Nehawu to march for better health service","a":82},{"b":"d","i":"898725","t":"Probe Gauteng water crisis: DA","a":83},{"b":"c","i":"1840950","t":"Microsoft Windows 10","a":84},{"b":"e","i":"513182","t":"A Lesson From Four Seasons: Customer Service Scripts vs. Employee Empowerment","a":85},{"b":"f","i":"1104966","t":"The Technology Town Hall","a":86},{"b":"c","i":"1840923","t":"Offshore Yuan Gains Most Since June as U.S. Stocks Weaken Dollar","a":87},{"b":"c","i":"1840924","t":"Ringgit Leads Gains in Asian Currencies on Fuel-Price Increase","a":88},{"b":"d","i":"898652","t":"PRINCETON: Sept. 11 witness gives lecture at Princeton","a":89},{"b":"d","i":"898634","t":"Rice Wireless Experts Tap Unused TV Spectrum","a":90},{"b":"d","i":"898576","t":"Men's College Soccer: SCCC is No. 9 in U.S. in latest poll","a":91},{"b":"d","i":"898575","t":"Men's College Soccer: SCCC is No. 9 in U.S. in latest poll","a":92},{"b":"d","i":"898601","t":"WEST WINDSOR-PLAINSBORO: Board votes to name field after David Bachner","a":93},{"b":"f","i":"1104861","t":"Woman dies at McConnells Mill State Park","a":94},{"b":"d","i":"898587","t":"PG tennis program thriving","a":95},{"b":"e","i":"513161","t":"WH: 'Screening Procedures In Place At Our Border'","a":96},{"b":"f","i":"1104909","t":"Conference tackles Ebola threat","a":97},{"b":"d","i":"898567","t":"MoE, UBD Conducts Lesson Study Seminar","a":98},{"b":"d","i":"898536","t":"First Data Announces Additions to Senior Leadership Team","a":99},{"b":"c","i":"1840858","t":"Bombs slam into Islamic State stronghold on Iraq-Syria border","a":100}]

      100

      NEC Launches UNIVERGE® SV9000 Series Communications Servers