Beijing, November 11 ( Beijing) – As the gap between rich and poor in the United States widens, the wealth of the top-of-the-line minorities now has almost as much wealth as the entire middle class and upper-middle class.
According to the Federal Reserve, the richest 1 per cent of Households in the United States now control more than half of the stakes in u.S. public lying and private companies. These huge portfolios make the ‘cake’ on the plates of America’s top elite grow.
By the end of the second quarter, america’s richest 1 per cent of households had about $35.4 trillion in assets, almost the same as the entire middle and upper middle class. Tens of millions of people, mostly from the middle and upper middle classes, hold about $36.9 trillion in assets, or tens of millions of people in the U.S. population.
In the second quarter of this year, the wealth of the richest American households increased by $650 billion, while those Americans, who make up 50-90 percent of the population, increased their wealth by only $210 billion.
Stephen Colavito, chief market strategist at Lakeview Capital Partners, an investment firm for high-net-worth investors, says this is at least partly due to interest rates.
He explains that people can’t get much from deposits and other passive investments, so they put money into the stock market to support the market as a whole.
These investments, in turn, qualify the rich to put their money into earmarked hedge funds and private equity funds. Many of these funds require investments of at least $5 million to qualify.
“The richer the rich, the more opportunities they have, ” says Mr Coravetto. “
Perhaps soon, America’s top 1% of the rich will have more wealth than the entire middle and upper classes combined.