The Death of Equity Investment
hardrightedge.com
We’re entering the 3rd bear market in the last four years (if you view the flash crash as a mini-bear, which I do). This is the nail in the coffin for the quaint idea of buying stocks as investments. The public already knows this, which is why we’ve seen a mass exodus out of the stock markets in the last 18 months. In fact, I think the only ones that don’t know it is the Wall Street crowd because they’re so immersed in the con game that they have no conception of reality.
Two generations of demographics support this death of equity investment: I’m in the middle of the baby boomer generation and will turn 60 in three weeks. Folks like me are looking to reduce risk so we can pay for our old ages. We have no intentions of taking our low return nest eggs and betting on the next Internet or Starbucks, especially in a Taco Bell society that has lost its flair for innovation.
Our kids, aka the next generation, are dead broke because the old folks in power have abandoned them. They know better than we do that Wall Street is a rigged game because they’ve grown up to an evening news environment that’s bombarded with financial crisis after crisis. Maybe that’s why my two grown children want nothing to do with this industry. Meanwhile, the financial elite have sucked the life out of healthy trends in real estate, raw materials, Internet and a dozen other growth sectors with artificially-created bubbles that are now broken beyond repair. They got rich while their customers got lectured about personal responsibility and thrown out of their homes.
This is fine for me because trading isn’t investment, which still works, so I can stick around and turn out the lights and lock the doors when it all ends. But, to tell you the truth, I find the whole thing quite depressing because capitalism is a beautiful thing, when done correctly. |
