Jordan Hayes wrote:
> it is now the case that the largest amount of the holdings
> comes from appreciation and not savings itself; so
> it's worth looking at the total amount invested.
And this is precisely why "the savings rate" remains low in the US: the gains in the market have become a replacement for further savings. If your account went up $20k last year and you're allowed to put another $9k in, the actual savings begin to pale in comparison to what you see as the year-on-year balance. This is new; a 7% return doubles your money in a little over 11 years.
The market has doubled in a little over two years, quadrupled in the past six.
This decrease in the impact of a "low savings rate" has also left people with more disposible income, leading to further consumption gains.
/jordan