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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (2613)	2/9/1999 8:59:00 AM
From: Terry Whitman	Read Replies (3) \| Respond to of 3339

< Fiend Commentary ================ A Few Reasons Why We Are Nearing a Major Top: Part VI In previous commentaries, I have argued that the public's confidence in the U.S. stock market is at unprecedented levels. The following excerpt from a recent Associated Press article takes this confidence to an even higher (or maybe lower) level: The Rev. Jesse Jackson says religious leaders must help teach the poor about stocks, bonds and mutual funds so they can catch a ride on Wall Street and not take a chance on the lottery or a roll of the dice. "We expect to see ministers in the ministry and the marketplace," the civil rights leader said this week. Jackson, president of the Chicago-based Rainbow/PUSH Coalition, detailed his initiative during a news conference at the United Theological Seminary. Jackson said he would like to see 1,000 churches organize investment clubs, tapping into the knowledge of bankers and others in their congregations to educate people in debt about the "capital finance culture" and the language of the market. The poorest people spend the most on chance because they feel they do not have a choice," he said. "At the time of a bull market, they choose a bear lottery." Jackson said the investment clubs would teach people "to read the stock page, not just the sports page." Yes folks, now even Mr. Champion of the Poor himself is now touting the stock market. It is almost difficult to believe this, but it is certainly consistent with the greatest stock market mania in U.S. history. The mania has been so strong for the past several years that the Reverend has now decided that now is the time for the most marginalized elements to have their shot at easy riches. It is not that I'm against the idea of the poor investing in stocks, but you have to question the wisdom of his timing. Where was Jesse back in 1990 or 1995 when stocks were a far better value than they are now? The sad thing is that if the Reverend and other ministers succeed in drawing the poor and disenfranchised into the stock market, it will just ensure that they will suffer the heaviest losses. Individuals involved with the stock market several years ago would at least have some gains to offset some losses. The poor would not have that luxury and would be investing in a stock market that is already extremely overvalued by almost any standard. When the stock market crashes and/or grinds through a long bear market, the poor would likely learn that the stock market was not the place to be after all. This was the lesson learned by many investors in the 1970s and only the incredible rally of the 1990s was able to bring them back again. It is a shame that there are few Bulls when stock market values are at their best levels. There is an old axiom on Wall Street that states that you know the ride is over once the little guy starts to get into the market. With the poor now being solicited and encouraged to join in, I believe that we have reached this point like it has never been reached before.>