Trends in Household Portfolio Composition

51 Pages Posted: 22 Oct 2019

See all articles by Jesse Bricker

Jesse Bricker

Board of Governors of the Federal Reserve System

Kevin B. Moore

Board of Governors of the Federal Reserve System

Jeffrey P. Thompson

New England Public Policy Institute, Federal Reserve Bank of Boston; Federal Reserve Board of Governors

Multiple version iconThere are 2 versions of this paper

Date Written: 2019-09-20

Abstract

We use data from the Survey of Consumer Finances (SCF) to explore how household asset portfolios in the United States have evolved from 1989 to 2016. Throughout this period, two key assets—housing and financial market assets—have driven the aggregate household balance sheet evolution. However, aggregates mask great heterogeneity in balance sheet composition across the wealth distribution, and most families hold a relatively small share of assets in financial markets and larger shares in housing and other nonfinancial assets. We also describe the typical life cycle asset accumulation processes among low, middle, and high-income families which—though varying dramatically by level—are quite similar. Finally, we use household balance sheets to describe how financial vulnerability has changed over time.

Keywords: Distribution of wealth, Household finance, Household wealth

Suggested Citation

Bricker, Jesse and Moore, Kevin B. and Thompson, Jeffrey P., Trends in Household Portfolio Composition (2019-09-20). FEDS Working Paper No. 2019-069. Available at SSRN: https://ssrn.com/abstract=3473055 or http://dx.doi.org/10.17016/FEDS.2019.069

Jesse Bricker (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Kevin B. Moore

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Jeffrey P. Thompson

New England Public Policy Institute, Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

Federal Reserve Board of Governors ( email )

Washington, DC 20551
United States

HOME PAGE: http://https://www.federalreserve.gov/econres/jeffrey-p-thompson.htm

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