The following chart is from the CalculatedRisk post of September 11, 2025 titled “Fed’s Flow of Funds: Household Net Worth Increased $7.1 Trillion in Q2.” It depicts Total Household Net Worth as a Percent of GDP. The underlying data is from the Federal Reserve’s Z.1 report, “Financial Accounts of the United States“:
As seen in the above-referenced CalculatedRisk post:
The net worth of households and nonprofits rose to $176.3 trillion during the second quarter of 2025. The value of directly and indirectly held corporate equities increased $5.5 trillion and the value of real estate increased $1.2 trillion.
As one can see in the above chart, the first outsized peak was in 2000, and attained after the stock market bull market / stock market bubbles and economic strength. The second outsized peak was in 2007, near the peak of the housing bubble as well as near the stock market peak. A third outsized peak appears to have formed between 2021 and 2022.
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The Special Note summarizes my overall thoughts about our economic situation
SPX at 6587.47 as this post is written
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