Household Wealth Takes a Step Backward

Household net worth fell sharply last quarter after 4 straight quarters of gains. There was a 2.8% drop in total wealth of American consumers after considering debt. The loss came primarily from drops in the value of individual stocks, retirement savings, and mutual funds. The S&P 500 dropped 12% but rebounded 9% since the end of the quarter. An economist at Barclays Capital, Theresa Chen says that she expects the net worth to recover as the labor market begins to recover. However, there is hope in the market. The Real Estate market has increased by .3% or $46 billion. Household net worth had regained $6.2 trillion in the past 4 quarters. It wasn't quite enough to recover from the $17 trillion dollar loss between 2007 and 2009.