This chart from today's Early Look by Josh Steiner shows our projection for rising Wealth Effect through 2024 as a result of U.S. equity growth.
In the past 14 months, the value of the U.S. Total Equity Market Index has risen from $41 trillion to $54 trillion. Now, to be fair, in 2022, that index lost -$12 trillion in value, so the recovery of +$13 trillion needs to be weighed in the appropriate context.
Nevertheless, +$13 trillion in ~14 months generates a lot of wealth effect across, in particular, the upper slope of the K, where just about all of that wealth sits. This is likely to serve as an incremental growth driver this year, beyond what is already in the cards.
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