This is a passive perspective on savings, though, where households rely on the markets to raise the value of their assets over time. But, to create these assets, households need to consistently set aside some of their current earnings to invest for their future needs.
While the experience of the past few years of exceptionally low interest rates and lower expected stock returns encouraged a rational consumer to spend and not save, as the markets return to more long-term trends, we should see consumers moderate their behavior as well. 1  Office of Federal Housing Enterprise Oversight House Price Index.