A raging stock market has investors more satisfied with their finances than they have been in decades.
Financial satisfaction hit a 24-year high in the third quarter, thanks to a booming stock market and a big pool of open job opportunities, according to an index compiled by the American Institute of CPAs.
The index tracks data such as large-cap stock movement, personal taxation rates and the expectations of corporate executives and CPAs. It’s calculated by measuring the difference between financial “pain” indicators and financial “pleasure” indicators.
Financial satisfaction has risen steadily upward since the financial crisis that began in 2007.
This is the third consecutive quarter that the pleasure indicators hit a record, American Institute of CPAs said. The primary contributor to the boost is the stock market, measured by a proprietary large-cap stock index. That index is composed of the 750 largest companies trading in the United States, excluding American depository receipts, mutual funds and exchange-traded funds.
AICPA’s real estate index made the largest gain this quarter, thanks to gains in the market value of real estate that exceeded increases in outstanding payments on mortgages.
Home sales were unexpectedly high on Oct. 25, suggesting that the strong real estate market is continuing, though those numbers were not included in AICPA’s index, which only measured data from the third quarter.