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The reason people view the economy through the shareholders' eyes is because very many of them are shareholders and count on the stock market to pay for their r

by blfr 11y ago

The reason people view the economy through the shareholders' eyes is because very many of them are shareholders and count on the stock market to pay for their retirement. It's also the opposite of looking only for short-term gains.

mschuster91 11y ago
Who, these days, is directly investing in stocks for their retirement? That's absolutely crazy imho. Just choose an index fund if you're in long term (http://www.forbes.com/sites/mitchelltuchman/2013/07/18/hedge-fund-vs-index-fund-a-comparison/ http://www.forbes.com/sites/mitchelltuchman/2013/07/18/hedge...). Fuck hedge funds.
- joshu 11y ago
  You mean mutual funds. Hedge funds aren't open to the general public.
- walshemj 11y ago
  The why do many of the big stock picking equity income Investment trusts beat the FTSE 100 and over several decades.
- coderjames 11y ago
  I do, as part of a diversified portfolio. I couldn't find an ETF with reasonable fees that provides the make-up I wanted: long-term history of dividend growth ex-cigarettes/pharma. This dividend stream will provide a meaningful percentage of the income in retirement. It is presently being reinvested for compound growth.
SeanDav 11y ago
With some notable exceptions, in general, shareholders are not patient people. Their horizon is usually the next quarter's results. After all why keep your shares in a company that is not making a "good enough" return, when you can easily them to the next company that is due to make outstanding returns. I worked in the investment banking industry for many years, on both the buy and sell side and believe me - "long term" is not in most shareholder's vocabulary.
- WalterBright 11y ago
  Of course shareholders seek to maximize returns. There's nothing wrong with that. BTW, shareholders who churn their accounts tend to do poorly. That doesn't hurt other shareholders, though. But it does mean you don't need to heap further punishment on them.
- lmm 11y ago
  If you work in the industry where you're talking to people who buy or sell, of course most of the people you meet will be the ones who buy or sell frequently. You'd never even know the buy-and-hold investors existed, because they're not the ones talking to an investment bank.
  - SeanDav 11y ago
    Agreed, that is a factor, but give me some credit for knowing that. I stand by my original comment.
Retra 11y ago
I'm not sure how most shareholders think, but if it were me, I would certainly not be counting on stock for retirement. I would be looking to increase stock earnings in order to purchase capitol and create business and research opportunities, all of which are things that you don't want to wait for retirement to do.

by blfr 11y ago

mschuster91 11y ago

Who, these days, is directly investing in stocks for their retirement? That's absolutely crazy imho. Just choose an index fund if you're in long term (http://www.forbes.com/sites/mitchelltuchman/2013/07/18/hedge-fund-vs-index-fund-a-comparison/ http://www.forbes.com/sites/mitchelltuchman/2013/07/18/hedge...). Fuck hedge funds.

joshu 11y ago
You mean mutual funds. Hedge funds aren't open to the general public.
walshemj 11y ago
The why do many of the big stock picking equity income Investment trusts beat the FTSE 100 and over several decades.
coderjames 11y ago
I do, as part of a diversified portfolio. I couldn't find an ETF with reasonable fees that provides the make-up I wanted: long-term history of dividend growth ex-cigarettes/pharma. This dividend stream will provide a meaningful percentage of the income in retirement. It is presently being reinvested for compound growth.

SeanDav 11y ago

With some notable exceptions, in general, shareholders are not patient people. Their horizon is usually the next quarter's results. After all why keep your shares in a company that is not making a "good enough" return, when you can easily them to the next company that is due to make outstanding returns. I worked in the investment banking industry for many years, on both the buy and sell side and believe me - "long term" is not in most shareholder's vocabulary.

WalterBright 11y ago
Of course shareholders seek to maximize returns. There's nothing wrong with that. BTW, shareholders who churn their accounts tend to do poorly. That doesn't hurt other shareholders, though. But it does mean you don't need to heap further punishment on them.
lmm 11y ago
If you work in the industry where you're talking to people who buy or sell, of course most of the people you meet will be the ones who buy or sell frequently. You'd never even know the buy-and-hold investors existed, because they're not the ones talking to an investment bank.
- SeanDav 11y ago
  Agreed, that is a factor, but give me some credit for knowing that. I stand by my original comment.

Retra 11y ago

I'm not sure how most shareholders think, but if it were me, I would certainly not be counting on stock for retirement. I would be looking to increase stock earnings in order to purchase capitol and create business and research opportunities, all of which are things that you don't want to wait for retirement to do.