Is Fed About To Stimulate A Hot Economy?

The bull market in stocks is making everyone who owns stocks richer. Gallup reported that 62% of Americans were invested in the stock market at the end of 2024 (chart). That's the highest since the end of 2008. We think the bull market is having a significant positive wealth effect on consumers who own equities, more than offsetting the debt effect on them of rising credit delinquencies.

At the end of Q1-2025, American households owned $46.7 trillion in equities and mutual fund shares (chart). The Baby Boomers held 54% of that total. They are the richest retiring generation in history, with a combined net worth of over $82 trillion. They will spend more of their retirement assets and transfer a larger portion of these assets to their children (while the Boomers are alive) and to their descendants (after they have passed away). Yet many of them are still seeing their net worth increase thanks to the bull market in stocks, which pushed the S&P 500 to yet another record high today!