In mid-2020, the least wealthy gained the most net worth

The FRED Blog has discussed how the onset of the COVID-19 pandemic reduced the net worth of households. To recap: Your net worth is the difference between the value of your assets and the value of your liabilities. When the value of your assets decreases while the value of your liabilities stays constant, your net worth becomes smaller.
The FRED graph above shows that the largest reduction in household net worth during the first quarter of 2020 occurred the wealthiest 1% of households. The high volatility of financial markets during that period and the differences in the distribution of total assets across different classes of households can help explain that.
The same FRED graph also shows that, during the second quarter of 2020, household net worth increased all around, this time with the largest gains among the bottom 50% of households.
Given the large reduction in economic activity recorded during that time, this

Federal Reserve Source

Author: RealEstate