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Why Millions Of Americans Should Hope For A Stock Market Crash

TedTed
in Fund Discussions
FYI: I hope stocks fall. That might sound pretty strange. But not everybody should be cheering for the same team. In fact, about 125 million Americans should wish for stocks to stagnate, dip or downright crash. That’s roughly the population between the ages of 25 and 55. A smaller number of people (about 76 million) should prefer stocks to rise. That’s the population of Americans above the age of 55.
Regards,
Ted
http://assetbuilder.com/andrew_hallam/why_millions_of_americans_should_hope_for_a_stock_market_crash

Comments

  • Sven
    Those 55 and above who got burned in 2008 are largely in cash and I am not kidding. Behavioral investing is a powerful driving force, not logic.
  • Dex
    Unfortunately, the author is a believer in the 1 variable school of thought - i.e. a change in one variable is a good thing.

    A crash in stocks could mean fewer jobs and/or lower wages for the younger investor. It also assumes the younger investor has money to buy stocks - I don't many do.
  • clacy
    Dex said:

    Unfortunately, the author is a believer in the 1 variable school of thought - i.e. a change in one variable is a good thing.

    A crash in stocks could mean fewer jobs and/or lower wages for the younger investor. It also assumes the younger investor has money to buy stocks - I don't many do.

    I totally get what this article is saying, but let's face it..... If the stock market crashes, the vast majority of people in cash will continue to be in cash. Let's not pretend that these people will systematically start averaging into the market as it goes down.



  • Dex
    clacy said:

    Dex said:

    Unfortunately, the author is a believer in the 1 variable school of thought - i.e. a change in one variable is a good thing.

    A crash in stocks could mean fewer jobs and/or lower wages for the younger investor. It also assumes the younger investor has money to buy stocks - I don't many do.

    I totally get what this article is saying, but let's face it..... If the stock market crashes, the vast majority of people in cash will continue to be in cash. Let's not pretend that these people will systematically start averaging into the market as it goes down.



    That's true also - more people will swear off stocks and will confirm the actions who are in cash.
  • scott
    Another crash and CNBC will be hosted by tumbleweeds.
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