We're in the Money

By Michael Golz
FOXBusiness

Related Content
Rise in Wealth Spreads Across U.S.
Despite high unemployment and a lagging economy, the millionaires’ club in the U.S. saw a sharp increase last year. Families with a net worth of more than $1 million grew by 16% for 2009, following a 27% decrease in the year prior.
The Wall Street Journal’s Robert Frank sat down with FOX Business Network’s Varney & Company to explain the surprising increase in wealthy Americans and how it could occur during a recession.
“You have most of America which is dealing with near 10% unemployment, rising foreclosures and an economy that really just can’t get going,” said Frank. “The wealthy came back largely because of the bounce back in the stock market.”
Frank explained that wealthy people’s portfolios are largely concentrated in the stock market, where most Americans' net worth is tied up with their home. According to RealtyTrac there were nearly 3 million foreclosures in 2009. Comparably, the S&P 500 is now trading almost 70% higher from a 12-year low hit last March.
The Spectrem Group survey also noted a 17% increase in families with a net worth over $5 million, or a total of 980,000 households nationwide. Frank notes that this increase is a necessary step on the road to recovery.
“We want the wealthy to spend. If they’re getting wealthier they are the only guys with money right now – let’s face it,” said Frank. “We’re starting to see recovery and that’s very important for jobs.”

Monday, March 15, 2010
http://www.foxbusiness.com/story/markets/industries/finance/money/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxbusiness%2Feconomy+%28Text+-+Markets+-+Economy%29&utm_content=Netvibes

The number of millionaires increased in 2009. This article explains that this is a promising result of some recovery in our economy. The wealthier americans have more of their assets in the stock market and recent increases have boosted there wealth. This promotes spending and may explain the recent rise for demand of luxury cars and clothing.