Do stock market gains really help avg Americans?
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Originally Posted By: ZZman
It is reported that the top 10% of Americans own over 80% of stocks. This includes money Americans have in pension and 401k funds.
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
Here are two disconnects here:
1. The average American fails to plan for their retirement. You've covered this in previous threads. Those Americans who DID PLAN for their retirement benefited tremendously in 2017.
2. The latest good news on jobs and wages are not the reason for the recent market correction. Several factors, including potential interest rate rises, and the huge gains of the past year, led to a correction. Now, most of us were expecting he correction.
But the news would have you believe otherwise.
It is reported that the top 10% of Americans own over 80% of stocks. This includes money Americans have in pension and 401k funds.
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
Here are two disconnects here:
1. The average American fails to plan for their retirement. You've covered this in previous threads. Those Americans who DID PLAN for their retirement benefited tremendously in 2017.
2. The latest good news on jobs and wages are not the reason for the recent market correction. Several factors, including potential interest rate rises, and the huge gains of the past year, led to a correction. Now, most of us were expecting he correction.
But the news would have you believe otherwise.
Originally Posted By: Al
Originally Posted By: ZZman
It is reported that the top 10% of Americans own over 80% of stocks. This includes money Americans have in pension and 401k funds.
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
You seem to have a problem with even mainstream folks that are doing well.
There are a lot of people who wake up in their fifties, realize that they've got no plan for that future, and then look with envy on their neighbors and peers who did plan.
Aesop covered this over two thousand years ago with the fable of the ant and the grasshopper.
As people enter their own "fall", and see winter comIng, they realize that they've squandered the opportunity of their summer.
Originally Posted By: ZZman
It is reported that the top 10% of Americans own over 80% of stocks. This includes money Americans have in pension and 401k funds.
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
You seem to have a problem with even mainstream folks that are doing well.
There are a lot of people who wake up in their fifties, realize that they've got no plan for that future, and then look with envy on their neighbors and peers who did plan.
Aesop covered this over two thousand years ago with the fable of the ant and the grasshopper.
As people enter their own "fall", and see winter comIng, they realize that they've squandered the opportunity of their summer.
Companies sell stocks and/or bonds to raise money to invest in it's own infrastructure.
The stock market enables this initial sell and it enables second hand selling. This second hand buying and selling is crucial for these companies. Who wants to buy a stock/bond if you can't resell it to someone else, sometimes for a better price, later?
The stock market does not make any wealth. But it enables companies TO make wealth...or squander it.
Prices may or may not reflect actual values or whether we are genuinely wealthier.
We find that out when markets crash and grow.
Are you wealthier than you were 20 years ago? Well, do you have a 50" flat screen tv or do you have a 24" console tv?
What all gadjets do you have in your car now that didn't exist 20 years ago?
We can debate our ability to pay for such items and whether we are in debt for such items and thus, not wealthier after all. Lol
Short answer: stock market going up helps "average" Americans.... Maybe
The stock market enables this initial sell and it enables second hand selling. This second hand buying and selling is crucial for these companies. Who wants to buy a stock/bond if you can't resell it to someone else, sometimes for a better price, later?
The stock market does not make any wealth. But it enables companies TO make wealth...or squander it.
Prices may or may not reflect actual values or whether we are genuinely wealthier.
We find that out when markets crash and grow.
Are you wealthier than you were 20 years ago? Well, do you have a 50" flat screen tv or do you have a 24" console tv?
What all gadjets do you have in your car now that didn't exist 20 years ago?
We can debate our ability to pay for such items and whether we are in debt for such items and thus, not wealthier after all. Lol
Short answer: stock market going up helps "average" Americans.... Maybe
Originally Posted By: Quattro Pete
Quote:
Do stock market gains really help avg Americans?
They might, if an average American would invest in stock market.
Sadly, average American chooses to blow his/her money away on brand new cars every couple of years and the latest iPhones and other tech gadgets instead of putting it away and investing it.
Quote:
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
There is no disconnect at all. Higher wages will lead to one of two things:
1. reduced corporate profits
or
2. higher product pricing / inflation
It's all connected.
Higher wages also lead to more consumption as you indicated in the first part of your response (Americans spending all of their money).
Quote:
Do stock market gains really help avg Americans?
They might, if an average American would invest in stock market.
Sadly, average American chooses to blow his/her money away on brand new cars every couple of years and the latest iPhones and other tech gadgets instead of putting it away and investing it.
Quote:
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
There is no disconnect at all. Higher wages will lead to one of two things:
1. reduced corporate profits
or
2. higher product pricing / inflation
It's all connected.
Higher wages also lead to more consumption as you indicated in the first part of your response (Americans spending all of their money).
4WD
$50 site donor 2024
Wait ~ are you saying with a minimum wage job I should not have a 50” TV … the newest iPhone … designer clothes … and a fully loaded Fiat 500?
Well then, I’m not inviting you to play poker in mom’s basement and raid her liquor cabinet …
Well then, I’m not inviting you to play poker in mom’s basement and raid her liquor cabinet …
Originally Posted By: 4WD
Wait ~ are you saying with a minimum wage job I should not have a 50” TV … the newest iPhone … designer clothes … and a fully loaded Fiat 500?
Well then, I’m not inviting you to play poker in mom’s basement and raid her liquor cabinet …
Th Fiat would be incorrect....
But in the hood, appeared a lot of new/new-ish wv and nissan and hyundai and ford. pretty much all the dealerships from around the hood....
Wait ~ are you saying with a minimum wage job I should not have a 50” TV … the newest iPhone … designer clothes … and a fully loaded Fiat 500?
Well then, I’m not inviting you to play poker in mom’s basement and raid her liquor cabinet …
Th Fiat would be incorrect....
But in the hood, appeared a lot of new/new-ish wv and nissan and hyundai and ford. pretty much all the dealerships from around the hood....
Originally Posted By: Alfred_B
Originally Posted By: Quattro Pete
Quote:
Do stock market gains really help avg Americans?
They might, if an average American would invest in stock market.
Sadly, average American chooses to blow his/her money away on brand new cars every couple of years and the latest iPhones and other tech gadgets instead of putting it away and investing it.
Quote:
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
There is no disconnect at all. Higher wages will lead to one of two things:
1. reduced corporate profits
or
2. higher product pricing / inflation
It's all connected.
Higher wages also lead to more consumption as you indicated in the first part of your response (Americans spending all of their money).
Yes, so increased demand, and if the supply side can't keep up, that will add to inflation as well.
Originally Posted By: Quattro Pete
Quote:
Do stock market gains really help avg Americans?
They might, if an average American would invest in stock market.
Sadly, average American chooses to blow his/her money away on brand new cars every couple of years and the latest iPhones and other tech gadgets instead of putting it away and investing it.
Quote:
The latest good news for Main Street (more jobs, higher wages) hurt Wall Street.
Is there a disconnect?
There is no disconnect at all. Higher wages will lead to one of two things:
1. reduced corporate profits
or
2. higher product pricing / inflation
It's all connected.
Higher wages also lead to more consumption as you indicated in the first part of your response (Americans spending all of their money).
Yes, so increased demand, and if the supply side can't keep up, that will add to inflation as well.
I would say gains do not help as the ave will only get the crumbs.
However when the market crashes the Ave. American pays the price. Either via governmental subsidies bailouts or other incentives using the public money to get business going again .
As well as directly. Company executives are driven by stock prices in a downturn must find a way to cut costs which often falls on the head of employees. While in good times they dont share as equally in thr benefit.
However when the market crashes the Ave. American pays the price. Either via governmental subsidies bailouts or other incentives using the public money to get business going again .
As well as directly. Company executives are driven by stock prices in a downturn must find a way to cut costs which often falls on the head of employees. While in good times they dont share as equally in thr benefit.
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Not necessarily a disconnect but you have to remember that the stock market is NOT the economy. Wages, jobs, employment rate, interest rates, prices, available credit, etc. is the economy. This is what matters to the average American in their daily life. As others pointed out, more people should be invested in the stock market if nothing more than a stock market index fund for retirement. Investing in individual stocks is too complicated and risky for most people.
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By top 10% are you talking about personal wealth? If you are then you should realize the connection. If the wealthy own stock then they likely got wealthy by owning stock.
Every single person in the USA can open an account with Fidelity and trade stock for about $10 a trade. There is absolutely no reason why the average citizen isn't reaping the rewards of corporate ownership. Throughout the 1980's the stock market hovered (Dow 30) around 2000. This was an entire decade. Today the market is at 24,xxx. While the companies listed on the Dow 30 change regularly, the growth of this index fund is indisputable. This reflects a heck of a lot of wealth building.
I feel that people should educate themselves on how companies work and what it means to be a share holder. The stock market isn't like hitting the lottery. There are rarely lump sum increases overnight. If I can invest a years salary and have it grow 50%-75% in ten years then that is money that I didn't have to work a minute for. If I take a small percentage of my income and invest it in a common index fund every payday for my 35 year working career then I am going to have a heck of a lot of growth that I didn't have to work for.
Wealth is NOT an us versus them situation. I never have felt dislike toward the wealthy. I have always sought to be like them.
Every single person in the USA can open an account with Fidelity and trade stock for about $10 a trade. There is absolutely no reason why the average citizen isn't reaping the rewards of corporate ownership. Throughout the 1980's the stock market hovered (Dow 30) around 2000. This was an entire decade. Today the market is at 24,xxx. While the companies listed on the Dow 30 change regularly, the growth of this index fund is indisputable. This reflects a heck of a lot of wealth building.
I feel that people should educate themselves on how companies work and what it means to be a share holder. The stock market isn't like hitting the lottery. There are rarely lump sum increases overnight. If I can invest a years salary and have it grow 50%-75% in ten years then that is money that I didn't have to work a minute for. If I take a small percentage of my income and invest it in a common index fund every payday for my 35 year working career then I am going to have a heck of a lot of growth that I didn't have to work for.
Wealth is NOT an us versus them situation. I never have felt dislike toward the wealthy. I have always sought to be like them.
The thing to remember about the market is steady investing, such as monthly payments into a 401k, benefit from downturns. You will get more shares for money invested, so the next upturn generates greater return. Think long haul, and don't get in the habit of trying to time the market.
There's a few millionaires on BITOG. Some got there by real estate, stock market investing, inheritance, own a successful business or married into money...
Nothing wrong with a few millions in net worth.
Nothing wrong with a few millions in net worth.
Originally Posted By: Inspecktor
The thing to remember about the market is steady investing, such as monthly payments into a 401k, benefit from downturns. You will get more shares for money invested, so the next upturn generates greater return. Think long haul, and don't get in the habit of trying to time the market.
The thing to remember about the market is steady investing, such as monthly payments into a 401k, benefit from downturns. You will get more shares for money invested, so the next upturn generates greater return. Think long haul, and don't get in the habit of trying to time the market.
My 401K has grown 4000%. I make around 50K a year. The opportunity is there for the Americans who want to take advantage of it.
Originally Posted By: dave1251
My 401K has grown 4000%. I make around 50K a year. The opportunity is there for the Americans who want to take advantage of it.
Yes and no. It depends on income, lifestyle, where you live and what you may need to give up along with others factors. Just because some people can do things doesn't mean everyone can. All people are different.
My 401K has grown 4000%. I make around 50K a year. The opportunity is there for the Americans who want to take advantage of it.
Yes and no. It depends on income, lifestyle, where you live and what you may need to give up along with others factors. Just because some people can do things doesn't mean everyone can. All people are different.
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