Lizzie/
"Wages are what fueled our stock market in the last decade."
What is the basis for this assertion?
BTW, well known pundit Jim Cramer flatly stated on his program today that institutions determine the level of stock prices, not the viewer(i.e. individual retail investor). Was this the pundit you were referring to? Or was it John Bogle,founder of the Vanguard funds and noted author, whom I have previously referred to? In any case, I hope it was not I since I don't qualify to be a pundit. One point of clarification, I did not assert that institutional investing would save our market from new lows. we could indeed make new lows, or not, as time will tell. My point was that it was not the retail investor and therefor not his/her wage level that will determine market direction.
One more point, savings rates in countries like Japan and China are stunningly high, but we don't see it correspond to their stock market behavior, they go up and down too. What do you make of that?
Bogtalk
p.s. in addition to institutions such as pension fund, and mutual funds, I think hedge funds, venture capital firms, and private equity groups should be included as important players.
The hedge funds really move the prices around. |
