Home Equity Beats Stock Investment : 1995 - 2004

In 1995, U.S. households held similar amounts of assets in home equity and corporate stocks: US$4.3 trillion in stocks and US$4.7 trillion in home equity. (See: Federal Reserve Flow of Funds Table B100.)

Over the decade, the situation changed dramatically, so that by 2004, households held US$4.8 trillion more in home equity than in corporate stocks, as the graph shows.

Home Equity vs. Stock Holdings
Home Equity vs. Stock Holdings

This difference came about because of the crash in the stock market in 2000-2001 and because of the steady increase in home values throughout the decade.

[Note: ‘Home Equity’ is calculated by subtracting home mortgages from the market value of residential property owned by this sector.]

Bookmark and share this article:These icons link to social bookmarking sites where readers can share and discover new web pages.
  • blinkbits
  • BlinkList
  • blogmarks
  • co.mments
  • connotea
  • del.icio.us
  • De.lirio.us
  • digg
  • Fark
  • feedmelinks
  • Furl
  • LinkaGoGo
  • Ma.gnolia
  • NewsVine
  • Netvouz
  • RawSugar
  • Reddit
  • scuttle
  • Shadows
  • Simpy
  • Smarking
  • Spurl
  • TailRank
  • Wists
  • YahooMyWeb

Comments are closed.

copyright | privacy | home

Powered by WordPress | Entries (RSS) | Comments (RSS)