4 ms·
Everyone in the stock market winning does not mean everyone is winning. That is, not everyone is in the stock market. MOST are not in the stock market. Even m
by eximius 9y ago
Everyone in the stock market winning does not mean everyone is winning.
That is, not everyone is in the stock market. MOST are not in the stock market.
Even more are not in the stock market in any appreciable, day-to-day way. If my 401k went up 100x, I'd still have to go to work and budget because my 401k is not liquid.
- icedchai 9y agoIf your 401k went up 100x, you could quit, roll it over to an IRA, and pay early withdrawal penalties. Done.
- brianwawok 9y agoIf all 401ks went up 100x, then inflation would cause the price of all goods to go up 100x, and you would need to go back to work
- icedchai 9y agoHe didn't say all. He said his.
- eximius 9y agoNo, let's say all. Depending on the report you read, between one third and one half of americans couldn't come up with $2,000 in an emergency if they needed it. The cost of most goods could not rise or people would starve. The stock market going up makes no difference to a majority of america.
- icedchai 9y agoMore people own stocks than you seem to believe: http://factmyth.com/factoids/about-half-of-americans-own-stocks/ http://factmyth.com/factoids/about-half-of-americans-own-sto...
- eximius 9y agoAnd what is their average exposure? If you have 10k in a 401k and it goes up by 100x, that's great, but not enough to immediately retire. If you have 50k in a 401k and your funds double (a more reasonable increase, but still absurdly well)... so what? The point is, the stock market is a terrible metric of how their wealth is doing for a great many people. Enough people that drastic upward movements will only affect the prices of higher-end items because it will not immediately inject cash into people's lives who are living paycheck to paycheck (or nearly are) and need to buy food.