We all know it’s been a tough year, financially and economically.
But it still stings to see a dollar figure put to the difficulties.
According to new data from the Federal Reserve, Americans’ household net worth plunged by about half a trillion dollars in the first quarter.
This was due in large part to the stock market’s long bull run getting stuck in the mud as equities reflected the prospect of higher interest rates and a slowing economy.
The Dow and S&P 500 each dropped by nearly 5% in the first three months of the year. The tech-heavy Nasdaq nosedived by almost 9%.
That was, not surprisingly, the worst quarterly showing for financial markets since the first quarter of 2020, when Mean Mr. Covid made his presence known.
Are we through the worst? Doesn’t look like it.
The Labor Department reported Friday that inflation last month rose by 8.6% — the fastest clip since 1981.
This makes aggressive rate hikes by the Fed more likely, which in turn would increase the likelihood of a recession.
On the other hand, um, the weather’s kind of nice, no?
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