In 2024, the US economy experienced a rapid recovery from the COVID-19 lockdown slump, leading to a renewed sense of enthusiasm across the country. The Dow Jones Industrial Average reached all-time highs, closing at 37,903, while the Nasdaq composite also hit a high of 15,605. This positive performance in the US equity markets indicated that the economy was heading in the right direction.
The driving force behind the US economy in 2024 has been affluent Americans rather than the middle class segment. Affluent Americans who invested in government bonds received higher yields compared to others in the same year. This trend of affluent Americans driving the economy is likely causing a delay in rate cuts by the Fed.
Affluent Americans are benefiting from rising home values and income growth in various sectors such as government bonds, commodities, and stocks. Their success is crucial to driving economic growth and stability. If affluent Americans do not continue to make money, there is a risk of crashing the US economy. Overall, their prosperity serves as a significant tailwind for growth in America’s economy.
In conclusion, despite challenges facing other segments of society during this time, it was affluent Americans who were instrumental in driving economic recovery after COVID-19 lockdowns led to an economic downturn. Their investment decisions and financial gains have played a critical role in stabilizing and growing America’s economy in 2024.
