WAXING WEALTH

Household equity holdings are now equal to 3x disposable income. This compares to 2x in 2019, and on par with disposable income as recently as 2009, during the Housing Bust. As a result of this massive rise in wealth, a 10% equity return including dividends after taxation at top rates is worth as much as an 18% rise in income. Despite lousy wage/income growth, the economy keeps growing, for now.