Important Information Concerning American’s Wealth Dip
According to an article in the News & Messenger Serving Prince William, Manassas and Manassas Park, Virginia, American’s wealth declined this past spring for the first time in a year, as stocks and home values fell, and did you know, corporations increased the size of their cash stockpiles?
This type of combination could very well slow an already weak economy because this implies families have less to spend and businesses are reluctant to expand. American’s household net worth dropped 0.3 percent to $58.5 trillion in the April – June quarter, according to a Federal Reserve’s Flow of Funds report. The decline followed three straight quarterly increases.
Did you know, the value of Americans’ stock portfolios fell 0.5 percent in the second quarter? Home values dropped 0.4 percent.
Corporations held a record $2 trillion in cash at the end of June, an increase 4.5 percent from the January – March quarter.
Reference:
News & Messenger Serving Prince William, Manassas and Manassas Park, Virginia, Information provided from wire reports