Uri, 17 years old. Congrats on learning about the market. Wish you could learn at something other than the top of a manic bubble.
IRAs and 401Ks are important, but not new. In most cases, IRAs and 401Ks are simply replacing or augmenting pension plans. So, whereas you used to pay 10% of your salary into the company's pension plan, which they then mismanaged horribly in most cases, you now self direct that money so you can mismanage it horribly in most cases. It isn't even a change of emphasis, as corporate pension plans are infamous indexers and so are individuals. Yes, there is some new money, net, net, but not as much as the touts would have us believe and certainly not enough to move this huge market. And even then, how many of those plans are being funded by debt indirectly? For example, instead of paying cash for a car, you fund your IRA and 401K to the max and take down a loan on the car. Very dangerous.
MB |
