The 1st quarter put a wallop on household assets
The first quarter put a wallop on household finances. According to the latest release from the Federal Reserve, which monitors asset levels through the end of March, equities as a percentage of households' total assets fell from 32.4% to 27.4%.
As a percentage of GDP, equity holdings plunged even further, from 94.8% to 73.3%.
That's the largest drop on record. Never before had equities dropped more than 20% as a percentage of the economy in only one quarter. Quarters when equities declined 10% or more coincided with major bottoms in stocks four (arguably five) times but was too early twice.
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