The American Investor's Stock Holding's at All-time High --Investor Thread May 12, 2015
The total privately owned stocks and mutual fund shares adds up to a soaring record total $21,169,400,000,000 --according to the latest Federal Reserves Flow of Funds Report. Yeah I see all the hands waving --and the big question that follows has to do with population and inflation. We went through this back on an earlier thread when the press was tootin' about how America's private wealth was supposedly at an all time high but only as a total of inflated dollars. The average American's total holdings in real dollars is still less than it was eight years ago. However, that's mainly because holdings in everything but stocks have been doing poorly, and looking at just the per capita real stock/mutual fund holdings we're seeing that the latest average has once again punched though to a new record high.
[insert collective "huh" here]
|
|||
Somehow this doesn't agree with what we've been hearing. I mean
we just had this FR thread started by
Red
in Blue PA titled
Over half of Americans have $0 in stocks and
the thread's article was based on a poll commissioned by Bankrate posted
April 9, 2015:
Did you miss the stock market rally? You're not alone
(--and here's an excerpt from the original Bankrate study:)
|
So what happens is the major news services just ran with it:
Let's face it doom'n'gloom pessimism sells. The left loves is because it's the basis for all the do-gooder gov't programs they want to fund, and the right loves it in hopes that it will somehow 'prove' what miserable failures all those do-gooder gov't programs have been. Back here in the real world the rest of us have been busy making our own lives better, we create wealth, and this talk about the fruits of our labor leads into two new areas of thought now. One is obviously the wealth-equality debate, and just what this average all time high for stock holdings means in terms of the majority of us who live on Main Street and not on Wall Street. We know that while it's for sure the average holdings are up our Bankrate friends are insisting that the masses are broke and that the lion's share of the population still views the stock market as a 'risky scheme'. Maybe, maybe not. IMHO we still need proof and the burden of said proof is on the bankrate people. Frankly I'm not impressed so far and I'll be even less impressed when some left-winger follows up with the old globalwarming saw "aw geez, he have to raise taxes 'cuz it might be true!!!" The other major area of thought we need to go through is consideration of just how significant these stock investments really are. Or aren't. The point being that savings isn't what we're living on now and that while stocks may be a fourth of our total wealth today it wasn't that long ago that it was a twelfth. America's personal net worth is more than just stocks, there's real estate, our land and homes are not stocks. Then again, there's also life insurance reserves, pension entitlements, and business equity --those are Personally, my thinking is that a thousand people sitting by their phones ready to chat about the risky scary stock market, is really no big deal here. They can't be representative of the same United States that came into its own in the 1800's, prevailed on the world stage in the 1900's, and the current millennium it's ah.. OK so we're not quite done with that one just yet...
|