Bearish Pundits Complain That Too Many People Listened To Them
- Joshua M Brown
- May 12th, 2013
Isn’t it ironic? Don’t ya think?
The new bear case is that the old bear case has been too successful in convincing people to be afraid. Can’t make this up.
Actual thing that is posted on Business Insider below…
From David Rosenberg’s note on Friday:
“Interestingly, the folks at Gallup just updated their survey and found that only 52% of American households now have money invested in the stock market, down from 53% a year ago and 62% five years ago. This is historically quite low … and guess what? This is causing bulls to come out and argue that the Fed has to be even more aggressive and for longer because this reduced public participation in equities means that we need an even larger wealth effect for the half of the population that are not involved in the market in order for the Fed to ultimately get its desired ‘escape velocity’ for the real economy.”
Josh here: So the stock market is up 145% from its lows over the last five years and many investors have sat out on the sidelines. How could that have happened? I don’t know, not even an inkling as to why.
I wonder what, or whom, could have caused so many to miss out?
What kinds of research or comments or viewpoints or horrifying predictions of inflation, deflation, disruption and destruction of capital could’ve weighed on these people so heavily that they sold their stocks and thought they were doing the right thing?
Who bears (pun intended) the responsibility for this?
Tis a mystery, perhaps one we’ll never solve.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.