People are falling out of love with stocks in a big way
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People are falling out of love with stocks in a big way
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| People are falling out of love with stocks in a big way |
People are falling out of love with stocks in a big way
The Dow industrials and the S&P 500 may be hurtling toward record highs, but the American people, whose love affair with stocks has understandably waned since the Great Recession, look to be more hesitant than ever to buy into the rally.
According to Gallup, only 52% say they currently have money invested in the stock market, matching the lowest ownership rate in the poll’s 19-year history.
In 2007, just before the markets were crushed by the collapse of the housing market, ownership hit a high of 65%. Stocks have recovered nicely since then, but it appears as if investor psyches still have plenty of healing to do.
Drilling into the numbers reveals that middle-class Americans are the most skittish when it comes to the market. Almost three out of four of those with incomes ranging from $30,000 to $74,999 said they invested money in stocks in 2007. That number has dropped to half, which is a much more severe decline than in the other income brackets.
It does seem the Boomersare leaving the Market in droves. The Market will see lows rarely hit and for a long period of time. Boomers took the Market up, now as they retire they will withdraw their safe money that could affect the market. Its an event Rich Dad, was talking about back in 2002. That it could take the market down. You can’t fight major economic shifts~! Now if the Market would go ahead and have a major Bear out, Boomers will be out and a new period can begin.
Greed and fear are great motivators. When the headlines read "DOW up 10 percent" or "DOW up 20 percent," the middle class buys in. No one wants to miss out on the next 10 or 20 percent move up.
On the other hand, when the headlines read "DOW down 10 percent" or "DOW down 20 percent," the middle class cuts and runs. Its like they PANIC..... No one wants to risk the next 10 or 20 percent move down.
The column states that the biggest decline in stock ownership is age group 18-34. Young people are impatient: they want positive results right away, and have no stomach for a 20-30 year investment plan.
At the expense of the middle class and poor. Compassion?
Many people got out of the market in 08 until we got rid of the fool. Now the market has been like a steam tread rallying higher.
Gee, I wonder if it's because 5 years of gains can be LOST in 3 hours, and if your mutual fund prices at the end of the day, it's too late??? What's the old saying, it takes the stairs up, but the elevator down! Well, lets not get carried away just yet, as the market has not really done much at all but act like a merry go round at the town fair. :-)
However, there is a saying to remember....Fool me once, shame on you; fool me twice , shame on me.
The Dow industrials and the S&P 500 may be hurtling toward record highs, but the American people, whose love affair with stocks has understandably waned since the Great Recession, look to be more hesitant than ever to buy into the rally.
According to Gallup, only 52% say they currently have money invested in the stock market, matching the lowest ownership rate in the poll’s 19-year history.
In 2007, just before the markets were crushed by the collapse of the housing market, ownership hit a high of 65%. Stocks have recovered nicely since then, but it appears as if investor psyches still have plenty of healing to do.
Drilling into the numbers reveals that middle-class Americans are the most skittish when it comes to the market. Almost three out of four of those with incomes ranging from $30,000 to $74,999 said they invested money in stocks in 2007. That number has dropped to half, which is a much more severe decline than in the other income brackets.
It does seem the Boomersare leaving the Market in droves. The Market will see lows rarely hit and for a long period of time. Boomers took the Market up, now as they retire they will withdraw their safe money that could affect the market. Its an event Rich Dad, was talking about back in 2002. That it could take the market down. You can’t fight major economic shifts~! Now if the Market would go ahead and have a major Bear out, Boomers will be out and a new period can begin.
Greed and fear are great motivators. When the headlines read "DOW up 10 percent" or "DOW up 20 percent," the middle class buys in. No one wants to miss out on the next 10 or 20 percent move up.
On the other hand, when the headlines read "DOW down 10 percent" or "DOW down 20 percent," the middle class cuts and runs. Its like they PANIC..... No one wants to risk the next 10 or 20 percent move down.
The column states that the biggest decline in stock ownership is age group 18-34. Young people are impatient: they want positive results right away, and have no stomach for a 20-30 year investment plan.
At the expense of the middle class and poor. Compassion?
Many people got out of the market in 08 until we got rid of the fool. Now the market has been like a steam tread rallying higher.
Gee, I wonder if it's because 5 years of gains can be LOST in 3 hours, and if your mutual fund prices at the end of the day, it's too late??? What's the old saying, it takes the stairs up, but the elevator down! Well, lets not get carried away just yet, as the market has not really done much at all but act like a merry go round at the town fair. :-)
However, there is a saying to remember....Fool me once, shame on you; fool me twice , shame on me.
Source : mw.com.
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