Monday, October 6, 2008

More pain to come !

Total household networth in the US at the end of the Second Quarter of 2008 was $56 trillion.

From 2002 through the end of 2007, US household networth rose from $39.2 trillion to $58.7 trillion.

The housing correction of $2.7 trillion from end of 2007 to second quarter 2008 was marginal, compared to the $19.5 trillion rise it saw from 2002 to 2007. We have lot of correction to take place from now and in the next few years.

Considering that only 5 US equity mutual funds (out of 9,100) had positive return YTD (as of Sep 17, 2008), it's hard to digest how much pain we are yet to see.

Data Source: Fortune Oct 13, 2008

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