of general well-being of the united states uh is you know when you take a look at the correlation in between uh people's net worth and what's going on with um the s p NUMBER_TOKEN so you know this was a a series of charts that got tweeted out by zerohedge and for me it was it was pretty interesting actually so you're looking at you know in the top left there you're looking at consumer net worth versus the s p NUMBER_TOKEN right which are super super correlated and you're looking at net worth as a percentage of income as well which is continuing to go up and up and up um so you know overall what's what's kind of interesting to me about these two charts on the left is that you know this almost flies in the face a little bit of that narrative that you hear which is what income inequality is being generated by you know central banks debasing the currency it's good for financial assets who owns financial assets the top one percent but honestly you know if you look at a lot of the charts coming out of the pandemic in general you know you do actually see even the bottom echelons of uh you know the income demographic they're going up as well which i mean come on don't get fooled by money illusion uh this is in nominal terms this is not in real terms and and it's and it's a cap waiting problem it's like the s p itself right the s p doesn't really go up it's the top names that go up because it's self perpetuating every time someone buys an s p NUMBER_TOKEN index they got to buy now four and a half or five percent of apple that's silly right that it should be you should be buying less as something becomes overvalued and buying more of the things that's helped rebalancing and the index and cap weighting is a momentum strategy and momentum strategies are fantastic in high liquidity environments that's how they work but value investors should be rotating from those highly overvalued sectors into the undervalued sectors and same thing's true here is you got these if you if you stratified this into the top NUMBER_TOKEN percent top NUMBER_TOKEN percent top NUMBER_TOKEN bottom NUMBER_TOKEN what you see is there's been very little growth in net worth for it's not zero to your point it's not zero but very little growth in that bottom echelon and and the growth rate is is not a NUMBER_TOKEN degree line it's like a NUMBER_TOKEN degree line for the tippy top and that's because it's concentrated these statistics on net worth are cap weighted right they don't they don't say you know my net worth is the same as jeff's net worth in calculating it's you know his like NUMBER_TOKEN gazillion times more than mine and so the it's like one of my first bosses of this great line figures lie and liars figure and if you torture the data long enough it will confess and while i i actually agree with you that there is there is some light in this tunnel here that there is some evidence that other people as well everyone's wealth is rising a little bit but again i think it's it's an oncoming train because i think it is true money illusion yes the house if you're lucky enough many people don't they rent so they rent their house they rent
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