Retire Early Lifestyle
Retirement; like your parents, but way cooler

In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 4th decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

Move Over Real Estate,

Wall St Now Drives US Spending

Billy Kaderli

Wall $treet Week with Louis Rukeyser

I find this information interesting, and it follows my own situation of wealth growth and spending.

Move Over Real Estate, Wall St Now Drives US Spending

By Jamie McGeever, Reuters, 9/16/2026

With stocks comprising a record share of US households’ financial and total assets, this argues they now drive consumer spending through an alleged “wealth effect,” but that their volatility could make personal consumption expenditures more erratic. We doubt it. First, the numbers. Through Q2, equities make up a record high 34% of households’ total assets, while real estate dropped to a record low share of 32%. As noted, “Even though real estate wealth is still rising, the rate is nowhere near the pace seen in equity values.” That pace: “Federal Reserve figures last week showed that household net worth leaped $12.8 trillion in the April-June period, up 7% from the previous quarter, thanks to a $10.7 trillion jump in the value of equity holdings. ... In other words, Americans have never been richer, and it’s largely down to the soaraway stock market.” But does that make personal consumption vulnerable if stocks slump? Marginally perhaps, but considering the lion’s share of spending is nondiscretionary—e.g., rent, healthcare, insurance, utilities, fuel and food—and most spending is funded out of income, the idea that wealth effects drive consumption falls apart. When real estate figured more prominently in households’ asset mix, it wasn’t like folks were broadly selling houses or tapping home-equity lines to buy groceries, pay utilities and whatnot. We don’t see people selling shares (to any great degree) for similar reasons, either.

I very much agree with this piece. Most spending is covered out of income, not assets. Keep that in mind the next time you hear that the sky is falling and you need to sell equities. Since I retired in 1991, I’ve lived through two 50% drops and numerous bear markets. Gut-wrenching, yes—but this is why you need a cash cushion, time, discipline, and patience.

When I was a broker, real estate was my biggest competitor. I produced charts showing the ten-year growth rates of two-, three-, and four-bedroom homes in Santa Cruz, California. Then I compared those returns with the S&P 500 Index. The index outperformed, with no real-estate taxes, maintenance, or pride-of-ownership improvements.

The tide of financial education seems to have shifted toward equities. In the early ’80s, when I started investing, the only weekly financial television show was Wall $treet Week with Louis Rukeyser. Now there is 24/7 market news. I find that to be a great indicator of future growth.

As even more households take part in the wealth effect of the markets, I am bullish on America.

Billy

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

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