1Q26_ Quarterly Outlook Report_Final_EN - Flipbook - Page 63
T H E P LUMB LI N E | A RETU RN TO F I RS T PRI N CI PL ES
Aggregate household net worth has continued to rise in inflation-adjusted terms
140
US$ trillion
120
100
80
60
40
20
0
1989
1994
1999
2004
2009
2014
2019
2024
Aggregate household net worth (PCE adjusted)
Source: Fed Distribution of Financial Accounts, Bureau of Economic Analysis, Scotia Wealth Management
However, although aggregate measures suggest that household balance sheets are healthy in real
terms, this strength masks significant distributional dynamics and underlying bifurcation, as high
income households – the top 20% – account for a disproportionate share of financial assets with
equities comprising an increasingly larger share of their balance sheets.
The top 20% of income earners hold the majority of financial assets
75%
90%
70%
85%
65%
80%
60%
75%
55%
1989
70%
1994
Recession
1999
2004
2009
Share of wealth held by top 20% - LHS
2014
2019
2024
Share of equities held by top 20% - RHS
Source: Fed Distribution of Financial Accounts, Scotia Wealth Management
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