Stock Market Is America's Great Wealth Equalizer
W ealth: "Half Of Americans Avoid The Stock Market," shouts a CNBC headline highlighting a new study. It's sad, really, because those who aren't in are much poorer as a result. And it's a big reason for the so-called wealth gap.
The Bankrate.com survey found that 52% of Americans have no stock market holdings at all. None. In 2002, it was just 33%.
Among those who don't invest today, 53% said they don't have the money, and 21% said they don't trust advisers. Doing the math, that means 72% of Americans could invest. Less than half do.
"It's a definite negative, especially for younger people who can afford to take some risk right now because they have time to recover from potential losses," noted Bankrate.com analyst Claes Bell. "For most people, stocks should be some part of the mix in their overall [retirement portfolio because of that ability to earn higher returns over a long period of time."
He's dead right. Those who can invest but don't are missing out on one of the great opportunities that comes with being an American investing in the growth and innovation of the world's biggest, most dynamic, most creative economy.
Unfortunately, Americans are constantly hit with a barrage of media misinformation about the stock market: "It's a casino." "It's too risky." "No one ever wins." "Only the rich get ahead." For others, the market is just another element in the growing "wealth disparity" dividing Americans. All these canards are easily dispelled, yet people accept that they have to live their lives from paycheck to paycheck, then retire on the pittance that is Social Security.
Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials/041015-747387-americans-hurt-themselves-by-not-investing-in-america.htm#ixzz3XAivo25V
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Everyone should put some of their money in the stock market in safe stocks at the very least. I can think of some I wish I had bought in early 2009, but at that time only seasoned investors knew what to buy, I guess.
1962?
Trying to push stock investment assome sort of panacea for income inequality ends up just not working in the real world.
Prime example, the 401K.
Working Americans don't need pensions they can justinvest in the stock marketthrough their 401K's and retire millionaires , or so they've beenpitched starting back in the early 80's.
What happened?
Fewer working Americans ended up with defined pensions, from their years of work, and the 401K plans haveonly helped the higher wage earners who had the extra incometo invest.
If XXJ told you the sky was blue, you'd argue that it was a far-right perception.
Usual trolling? LOL
By definition, you've been trolling this article.
Project much?
Yes, and what I saw was someone with nothing left to say, so he/she hurled a curse.
Mission accomplished.
$22 trillion is a reasonable representation of market participation by those other than in the upper crust. There are millions of people dripping small amounts of money into retirement plans every month. Their reward will be a supplement to their Social Security benefits. Long-term investing has always yielded a reasonable rate of return. People who shy away from this are victims of populist, anti-establishment propaganda. Shame on those who misinform.
"People who shy away" generally refers to people who have the resources, but choose not to deploy them.
People who don't have any money to put away for retirement are not shying away.
Hope this clarifies my statement.
I would say that the use of the word "all" would make the claim an exaggeration.
It would, however, be a great wealth equalizer to a far greater number of people who are able to, but will not participate.