The total value of US private-sector financial assets has reached 6.7 times the US gross domestic product, marking a new record.
The ratio, which compares the combined value of stocks, bonds, deposits, and other financial instruments held outside the government to annual GDP, surpasses the previous peak of 6.3 times set in 2021.
The Gap Between Wall Street and Main Street Hits a Record
According to the Kobeissi Letter, the ratio has more than doubled since the 1970s. When asset values climb faster than wages, the gains flow to investors who own capital.
The 6.7x ratio shows that the private sector holds nearly 7 dollars in financial instruments for every dollar of US output.
“When financial assets outpace the real economy, the wealthy get richer, and workers get left behind,” the analysts wrote. “The wealth gap has never been wider.”
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Wealthy Investors Are Doubling Down on Stocks
At the same time, portfolio positioning among high-net-worth individuals signals a continued tilt toward risk assets. The Kobeissi Letter noted that equity allocations have risen to 65% of total portfolios, the highest level since December 2021.
This marks a 7-point increase since 2023 and places current positioning just below the 66% peak seen during the 2021 meme stock surge.
“By comparison, the 2020 pandemic low was 54% while the long-term average is ~57%,” the post added.
The analysts added that cash holdings have declined to 10%, the lowest level since September 2018, while bond exposure has dropped to 18%.
The shift suggests that affluent investors are increasingly concentrated in equities, reflecting elevated risk appetite and continued confidence in financial markets.
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