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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (30114)	10/16/1999 12:59:00 AM
From: John Madarasz	Respond to of 99985

Tonight is my repost night<g>..."old?" favorites... Message 11502005

To: Jacob Snyder who wrote (30114)	10/16/1999 12:00:00 PM
From: Casaubon	Respond to of 99985

Your confused by statistics. The amount they own relative to the total may be small, but relative to their own wealth portfolio it represents a relatively large percentage. Thus when the wealthiest 1%, who own 50% of all stocks by your own statistics, start pulling their money out because they can afford investment advisors who know what they are doing, the small buy and hold investor who just wants a comfortable retirement gets the S&^T end of the stick. Why? Because they've been conned into believing that they should hold no matter what. When this strategy falls apart, and it looks like they may have to eat cat food during their retirement, they take a solemn look at their shriveled portfolio and think, "well fourty or fifty cents on the dollar is better than thirty". Since they don't even know what they own, they throw the baby out with the bathwater. The first sentence of those four statistics are what needs to be focused on. The record % of the population owning stock, have a greater percent of their total equity tied up. Also, these are the people who can least afford to lose that money. Also, the wealthiest will be able to weather a steep decline in the stock portfolio better, because they probably are high income earners and will therefore not suffer a drastic blow to their life style. Oh sure, a few might have to sell their luxury liners and their jets, or maybe a condo or two, but they won't be eating cat food when (if) the S$%&T hits the fan. Hey, it's hyperbole, but you get the point. I am not claiming J6P affects the market, as you state. I am claiming J6P is most affected by the market. And that is due to an unmitigated brainwashing campaign, instead education and judicious risk management. The majority, who are now market participants by your own admission, who can least afford to take a steep loss in their weallth portfolio, will suffer the greatest, even though they own a minority stake of the market.