4 ms·
Arent people 401k's and pensions part of the market ?
by pottersbasilisk 10y ago
Arent people 401k's and pensions part of the market ?
- TheBeardKing 10y agoFTA: "Wolff’s data shows that while stock ownership has increased over the past few decades, in 2013 (his most recent data point), less than half — 46 percent — of households owned stocks, either directly or through their holdings in some sort of fund (e.g., a retirement account)."
- refurb 10y agoI'd say almost 50% of Americans owning equities is pretty good. It will never be near 100%.
- tormeh 10y agoYeah, in many countries the number would be close to zero. German pension funds are only allowed to hold 10% of their value in stocks, so the rest goes into bonds and other low-risk investments. This is why Germany always want high interest rates in the Eurozone.
- psyc 10y agoDoesn't make much difference how many people "own equities" if they don't own much.
- deleted 10y ago[deleted]
- iaw 10y agoThe article addresses this.
- Spooky23 10y agoThey are, but most people don't have pensions and fewer people contribute to retirement funds than you may think. This is a feature of this low inflation market. There's no incentive to do anything but hoard cash.
- hueving 10y agoExcept that's precisely the opposite of a rational market participant position. Hoarding cash is almost always a losing position, even now. As long as we don't have deflation, any cash is losing value.
- Spooky23 10y agoCash was the wrong choice of words. Usually really rich people have more known downside risk from taxes. Lots of municipal bonds, treasury stuff and cash. If the money is tied up in company stock they often live off lines of credit. Remember that top X% of wealth isn't the same as income.
- paulpauper 10y agoyou have it backwards. high interest rates makes cash more appealing vs. stocks (although inflation and interest rates are not the same thing)