Want to know what the hot new trend in investing apparently is? Not investing. Even though the S&P 500 (SPX) has more than doubled from its March 2009 bear market lows, many investors still don't trust the rally according to a survey from Prudential Financial.
Prudential (PRU, Fortune 500), which polled more than 1,000 investors between the ages of 35 and 70 online earlier this year, found that 58% of those surveyed have lost faith in the stock market.
Even more alarming, 44% said they plan to never invest in stocks. Ever.
From Steve Mantz- Taxpayers Take Action 2011
money.cnn.com
These are signs of a two tiered economic system. Those who with large amounts of money have "Wealth Management Advisors" who shepherd their clients money around the rocky shoals.
Since these advisors are really plugged into the stock markets they can avoid many, but not all, bad turns in these markets.
The reason for this may be that they also help to create much of the dangers in the market.
The old fashioned idea of the stock market is to supply capital for companies to expand.
In today's market, few major companies have significant plans to invest in their businesses, but instead are using their sizable cash reserves to buy back stock and pay their executives high salaries and bonuses.
We also see the continued expansion of the financial derivative and hedge fund markets which are more of betting proposition than investing in the future of the American economic system.
If you are not the wealthy investor then you exist to supply the market grease. And as we all know the function of market grease is facilitate movement, lubricate and be crushed by gigantic segments of the market system.
Of course the real fun will begin when the market tanks and the wealthy investors will only have each other to steal from.
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