For U.S. households that own stocks, the first quarter of 2022 was a landmine. The stock market plummeted $3T, leaving many investors in the dust, especially those who heavily favored tech stocks. There is no secret that inflation is taking a choke hold on the country. The sticker shock at the pump and increased food prices have taken a toll on households nationwide. But surprisingly, not everyone is losing in this post-pandemic game. The disparity between rich and poor is lessening, as those who have often lived paycheck to paycheck have found more stable jobs and have been able to save more. The pandemic, war in Ukraine, inflation, and the stock market plummet have created a maelstrom clear as mud for the future.
Stocks Shrivel
The story is dismal. According to a report by the Fed released last week, U.S. household wealth experienced a $400B fall in net worth in the first quarter of 2022, from a record $149.8T to $149.3T. This is the first decline in household wealth since the first quarter of 2020 when COVID-19 stormed through the country.
