Victor Niederhoffer, Steve Wisdom,David Goodboy pondering the optimal trade prior to the 1999 market meltdown
Get Ready For The Richcession
Well-off Americans could get hurt more than usual in the next downturn
With the important caveat that they were starting off from much higher bases, percentage gains for the rich have been more muted.
Household net worth for the top fifth was 22% higher in the third quarter than before the pandemic, and was down 7.1% from the end of 2021—a consequence of the falling stock market. Paychecks haven’t risen as much, either, with the Atlanta Fed measure showing average annualized monthly wage growth for workers in the top quartile was 4.8%.
Recent layoffs have also inordinately affected higher-income workers. Many of the tech companies that have made headlines with layoff announcements pay extremely well. Securities filings show that the median worker at Facebook parent Meta Platforms made $295,785 in 2021, for example, while the average worker at Twitter made $232,626. And layoffs at those places where the typical worker is less well paid, such as Amazon.com, have largely been aimed at white-collar workers...