What's going on?

US households� �net worth� rose to its highest level ever last quarter, but that wasn�t necessarily good news for all Americans.

What does this mean?

A household�s net worth is calculated by subtracting its �liabilities� � like a mortgage and credit card debt � from its assets, including cash in the bank, real estate, and stock market investments. And it�s the last of those that�s made headlines: the value of household-owned stocks fell by around 25% between the end of 2019 and the end of 2020�s first quarter, only for those losses to reverse in the second. Trouble is, 45% of Americans aren�t even invested in the stock market � and data shows they�re also likely to be some of the country�s poorest and hardest-hit by the pandemic.

Why should I care?

The bigger picture: Kicked when they�re down.

80% of the lowest-earning Americans don�t own any stocks, so their households won�t have enjoyed last quarter�s windfall. Quite the opposite, in fact: since they�re more likely to be working in industries like hospitality and retail, they could well be among the US�s 22 million COVID-driven job losses. At the other end of the scale, remote workers with their nine-to-fives still intact haven�t had their finances hit so hard. That alone might widen the gap � in understanding, if nothing else � between society�s richest and poorest.

For markets: We�re in this together.

Even if they�re only looking out for number one, the wealthy should be worried. Unemployed people who cut out all-but-essential purchases could have a massive knock-on effect on already-slowing consumer spending, which accounts for 70% of the US economy�s growth. That could flatten a much-hoped-for recovery, as well as hit the profits of discretionary companies � sellers of products you want but don�t need. If that lowers those firms� share prices, you can bet stock-owning Americans will feel it too.