The US economy has experienced a remarkable recovery in 2024 following the COVID-19 lockdown slump, leading to renewed optimism across the country. The Dow Jones Industrial Average reached record highs, hitting 37,903 and the Nasdaq composite also climbed to 15,605 during the same period, showing positive movement in the US equity markets.
However, it is affluent Americans who are playing a key role in driving the US economy this time around. With rising home values causing challenges for the middle class, affluent Americans have been reaping the benefits of higher yields on government bonds and investments in commodities and stocks.
The wealth effect has helped prevent a sharp slowdown in the US economy by boosting consumer confidence and spending. This unexpected strength has contributed to stickier inflation and caused a shift in the Fed’s plans for rate cuts.
Affluent Americans are driving the US economy through gains in stocks, commodities, and the US dollar. If they are not successful in making money in 2024, there is a risk that the US economy could suffer.
Overall, significant gains in stocks, fixed income, home prices, and even crypto are providing a strong tailwind for the growth of
