More on Family Net Wealth at an all time high

Wednesday, March 10, 2004 | 11:57 AM

In our prior discussion of Family Net Wealth being at an all time high, we challenged the significance of that assertion within the framework of ultra low interest rates.

Now, a reader sends in this graphic from the prolific offices of Ned Davis Research:

Falling Household Compensation/Rising Household Debt
click for larger chart
household_comp_debt
Obviously, net wealth -- as a function of home ownership/low interest rates -- takes on a very different light when considering Total Household Compensation as a % of GDP, and Household Debt as a % of net worth . . .

Household Compensation is at a 38 year low relative to GDP. That's back to levels not seen since 1966. Household Debt as a % of net worth is simply off the hook. Its at the highest its been in the post War period (that's post WWII). There were modest improvements from 1980-84, and from 1994 - 2000. Since then, its been nearly vertical.


By the way, I just started reading Ned Davis' book, "The Triumph of Contrarian Investing : Crowds, Manias, and Beating the Market by Going Against the Grain" -- its very good, and has an excellent overview on the entire subject.

Wednesday, March 10, 2004 | 11:57 AM | Permalink | Comments (0) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00d83503ac0653ef

Listed below are links to weblogs that reference More on Family Net Wealth at an all time high:

Comments

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner