For the first time ever, household income in the U.S. has hit almost $93 trillion, according to the Fed’s quarterly report. That's driven, according to STA Wealth Management President Michael Smith, by the election of Donald Trump as president. “A big surge of that occurred last year in fourth quarter and a big part of that has been due to the president’s economic agenda and the optimism that the market is pricing in,” Smith tells KTRH News.
Stocks added $728 billion collectively to household incomes and are up 6% so far this year. A national increase in real estate values is responsible for an additional two trillion dollars of that wealth, half of the value being added after the 2008 economic decline which saw record foreclosures and plummeting prices for homes. Smith expresses enthusiasm for the trend, tempered with cautionary advice. “The market is pricing in a lot of optimism about what he is proposing, but keep in mind we need to see some action being taken, because at some point we’re going to hit an inflation point if we don’t see something done,” Smith tells KTRH News.
The report doesn’t provide information about how that wealth is distributed among households, but acknowledges that individuals with significant savings in 401(k) and IRA accounts are benefiting most, while the most valuable real estate in the country is largely concentrated in coastal states, including East Texas.