Maybe boomer selling isn't biggest stock worry
Some are worried that baby boomers will start dumping stocks to finance their retirement, keeping prices low for a long time. That's not Barry Ritholtz's biggest worry. He's concerned that nobody will be waiting there to buy them:
My single biggest concern regarding equity markets is not a bear or a bull phase — its the wholesale abandonment of investing by the broader public. That is the reason it took 25 years to regain the 1929 peak — til 1954. It required an entire new generation to be born, grow up and start again. I figure we are about 40% of the way there now.
Comments
Mr Ritzholtz should be concerned, I for one abandoned the stock market before 1987 and have never looked back. I also have raised my 3 children ( now adults) not to invest in the stock market, because it is a slight of hand w/ paper and the only ones who really make out are the Banks, Traders, Financial Investment firms and Stock Brokers. It is all about fees, fees, fees and if they are hurting for customers, well my heart just goes out to Wall Street (not)!!!!!
Posted by: Arewedoneyet1 | September 30, 2011 11:29 AM
Too much volatility for me. Can't take this roller coaster ride anymore.
Posted by: bill | September 30, 2011 12:29 PM
Quit the market after the 9/11 mess. Invested in CD's for the past 10 years,made more and slept a heck of a lot better.
Posted by: RTL | October 1, 2011 12:25 PM
The day will come again when stocks are gaping ever higher. And those who are swearing off stocks today will come in. They will find companies to get excited about and have their excitement validated by the fact that the stock price rose 75% over the prior 12 months. They'll make money initially and conclude that Wall Street is giving away money. It's just the ol' Gold Rush phenomena. The desire to make money easily will always be with us and Wall Street is one place it will continue to show up.
The trick, as always, is to buy when everyone else is giving up. A small minority of the young are learning this and slowly accumulating wealth in their 401 (k)s.
I do agree there is too much volatility. Leveraged exchange traded funds should be banned period!
Posted by: DIY Investor | October 2, 2011 8:24 AM