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Agreed. In addition to pension plans (most government employees), all 401K plans invest into stocks/indices. That's a huge chunk of regular middle class people
by robohoe 7y ago
Agreed. In addition to pension plans (most government employees), all 401K plans invest into stocks/indices. That's a huge chunk of regular middle class people throwing money into the market. Just because some people don't actively day trade, it doesn't mean that they're not affected by stock market.
- abakker 7y agoAlso, increasing stock prices are usually a key component of corporate finance, which will yield job growth, or promotion, or investment inside the firm, which are all good for employees. Even if much of the wealth generated directly by stock increases happens for the owners of the company, it enables the company to operate.