Investors abandoning stocks for good?

[kent]

money.msn.com/top-stocks/post.aspx?post=156554ae-4a78-41fe-8efd-d3ca6b27eed5

In part....

In a new study by Prudential Financial (PRU), 58% of investors say they've lost faith altogether in the stock market. The risks aren't worth it, some say. And 44% swear they're done with stocks for good and are not likely to put any more money into the market.

The study, which polled 1,274 Americans last winter, also suggested some fundamental changes in the way people think about saving for retirement. Nearly three out of four respondents said they need to think differently about retirement planning.

That makes sense, given how the financial crisis and recession destroyed two key notions about retirement saving. People who had hoped to rely on home equity watched the real-estate market implode. Others who thought they could depend on growth and income stocks saw intense fear and volatility as the market teetered.

And later in the article it says

"There's one problem with investors ditching the stock market, writes Carla Fried at CBS MoneyWatch.com. Stocks are still the best long-term shot at inflation-beating gains."

"Past Performance Is Not an Indication of Future Results." I wonder......

[Aman A.K.A. Ahamburger]

LOL, YES I caught that one too!! Where does the money go from the annuities?? ;D

[decoy409]

Ken, YOUR RIGHT!

[decoy409]

Ken,why that has hit the NEWS racks today as to the next fleet checking out!

[Deleted]

No....

Some investors have stepped back from the market, only to return when they figure out the best 10year rate is 3%

Stocks representing solid companies, are still THE BEST LONG TERM plan to acquire wealth, and outpace inflation

Companies that sell basic products....and are steady performers will always be sought after for growth and dividends

Other investments are in one day, out the next based on what is the hot flavor for the month

Coke, Mcdonalds, Proctor & Gamble, Exxon are a few of tried and true LONG TERM performers people count on

[decoy409]

June 8,2011 Traders Are Dumping Stocks and Buying Gold and Silver

www.cnbc.com/id/43300748

[Deleted]

Look at the first word in the article

TRADERS

AN investor and a trader are two completely different things

Traders for the most part are professionals....investors are common everyday people

Investors buy for LONG term.....traders buy for hours, days, or weeks at most

[The Virginian]

In a new study by Prudential Financial (PRU), 58% of investors say they've lost faith altogether in the stock market. The risks aren't worth it, some say. And 44% swear they're done with stocks for good and are not likely t

Where do you think Prudential will Invest your money???
In Gold?



Those that stuck with the market after the Great Depression were repaid many times over!

[decoy409]

Kent, the above example was just a warm up.

We had started to discuss this some time back. However many that shared really good information checked out due to the rat pack show.
I do not put the poster above this post any longer in that camp simply because I have not seen them contributing to much as of late,but I could be wrong about that.

From 9 months back already,

Quote: Started 9 months, 2 weeks ago by Veteran_Lender
Do you smell that? I did a long time ago and was smart enough to stay out of a fake manipulated market. I have ALL my cash intact, do you? Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. Now many are choosing investments they deem ...

boardreader.com/thread/Small_Investors_Leaving_The_Markets_In_R_g9m5X12hkf.html

That was from Veteran_Lender.

[lifewasgood]

After each crash, some investors have walked away, and some returned only to walk away again. Each crash, more and more are leaving the stock markets behind. This latest run up in stocks was fueled by institutional investing funded by QE2 courtesy of the FED. The latest down turn in stocks is the speculators getting money off the table as Ben did not send out the warm and fuzzy of QE3. If stocks get punished this summer, the Fed will provide another round of easing to keep the markets up. I say this as the FED has made it clear many times the economic recovery starts with investing in the stock markets.

I walked away from stocks in 2003 and have no regrets. But that is not to say I am not an investor, just not an investor in publicly traded companies.

[decoy409]

Well said life!

[jarhead1976]

The stock market (DJIA) looks like an EKG print out headed for a stroke.

[lifewasgood]

Jarhead,

Yup couldn't agree more.

[usaone]

Same thing happened in the 1970s and early 1980s. Then everyone realized its the only place you can really get a good return on your money.....everyone piled in and the market went from 1,000 to 14,000.

Id rather be in early than late!

[decoy409]

Well once again,with a great deal of help is the reason for the market moving. And once again can not be compared to times of the 'past'

TARP 18x: the Unknown Bailout that Requires a Supreme Court Ruling for Full Disclosure

(excerpt) - The gray zone between what people say they’re doing and what they’re really doing is where true journalists make their value known.

No better examples exist than Bloomberg’s Mark Pittman (deceased) and Bob Ivry who are suing the Federal Reserve to quantify the true cost of the Wall Street Bailout.

steadfastfinances.com/blog/2010/09/07/tarp-18x-the-unknown-bailout-that-requires-a-supreme-court-ruling-for-full-disclosure/

Some people have a short memory and need to be reminded.

And they were sued,and they gave up 'part ' of the cooked books and spread sheets.

[Deleted]

Of course there are a lot of people who walked away from stocks. It’s Human nature 101. They felt a bad experience, and bailed. And those same people probably do the opposite - flock to things that are doing well short-term.

Good, sound investing has a component that requires doing things OPPOSITE of what the crowd is doing. Even a simple rebalancing approach, which is what I use, entails selling what has been doing well, and buying what isn’t doing well – KISS buy low/sell high strategy.

People who are working to meet long-term financial goals have to stick with long-term decisions, not worry about what happens in a day, a week, months, and yes - years.

So are the folks that are out of stocks, truly out for good? I’m sure in their survey response minds they are. I also see enough surveys to know there are a disappointingly large percentage of people who look forward to Social Security as their primary means for Retirement. I suspect a high correlation between the 2 groups.

I invest in equities and toss my SS annual statement in the shredder.

[lifewasgood]

Never say never, I will consider buying stocks once the markets return to enforceable regulation that eliminates the banks, FED, and US Gov from playing in the markets.

[jarhead1976]

Great report on Mark Pittman and his pursuit of information on the Federal Reserve. Transparency seems to be lacking in all Financial and Congressional aspects within our current system. Like trying to look through mud.

[decoy409]

Sad about the old death at Bloomberg. Why I posted the other whistleblower death that occured last week,(#1755 Decoy Post),

June 3,2011 - ‘A Trader, an F.B.I. Witness, and Then a Suicide’

New York Times:

In a Manhattan courtroom last week, federal prosecutors played for a jury a secretly recorded telephone conversation between two Wall Street traders exchanging stock tips.

Two days later, one of those traders, Ephraim G. Karpel, hanged himself in his Fifth Avenue office, according to a law enforcement official.

Mr. Karpel was never charged with any wrongdoing, and until last week his name had not emerged in connection with the government’s vast investigation of insider trading.

Yet while working for a New York commodities firm, he had agreed in 2008 to cooperate with federal authorities, and for about a year he taped conversations with fellow traders, according to two people with direct knowledge of the matter who insisted on anonymity to discuss it.


and from the Decoy Post,#1740,

June 1,2011 Companies scramble to raise capital

NEW YORK (CNNMoney) -- Shareholders in major U.S. companies are rushing to sell their own stakes, trying to cash out ahead of what many experts say will be a summer of declining stock prices.

money.cnn.com/2011/06/01/markets/....x.htm?iid=HP_LN

Why of course nobody is cashing out. Why what would happen if ws tanked hard?

jarhead,did you catch the MASSIVE CME? Check it out,I posted the vid.

[jarhead1976]

I did see that video . Beautiful and deadly. Not unlike some women I know.

[Virgil Showlion]

My stocks have gotten killed since April. I'm apparently one of those shareholders that doesn't know what he's doing.

[Driftr]

Jun 8, 2011 13:50:39 GMT -5 Virgil Showlion said:

My stocks have gotten killed since April. I'm apparently one of those shareholders that doesn't know what he's doing.

While the market value of my portfolio has decreased recently, the cash flow I receive from it has done nothing but increase. My kids may not end up with the dollar value I'd planned to leave them if the values don't increase, but at least my wife and I should be able to live off the income stream barring some crazy inflation that dividends don't keep up with or some black swans coming along and stealing our dividends.

[decoy409]

And again good points Driftr.

[decoy409]

Virgil,you don't know what your doing hey? Thanks for a good chuckle.

[Virgil Showlion]

Um... glad my dwindling stock returns make somebody happy, Decoy.

[decoy409]

Ah,that is not what it sounded like,or should have came across as you read it. What I meant to say is that you are a brain,and I have no doubt between your faith and that brain that you have,and that you will make the correct choices and you will fair just fine.

[bimetalaupt]

Jun 8, 2011 20:56:06 GMT -5 @wxyz said:

Yeah, most of those investing would be better off in index mutual funds, and I do mean funds not ETF's that they are going to be tempted to jump in and out of with every market scare. It has only been over the past 20 years that the average person has gotten into stocks and funds. In the 50's, 60's, 70's and 80's it was not common for people to own stocks or funds. It all picked up with the 90's, the internet, day trading, the dot-com boom, etc to now.

So what if people are too scared to invest in stocks or funds. It is not true anyway since the next time there is a boom and a bull market they will all be piling back in. Most likely just in time to get whipsawed. If the upturn lasts long enough there will be a whole new generation of so called investors that think their returns are due to their ability when it is simply a rising market.

It would be a good thing is most in fact got out.

wxyz,
The problems I have seen with friend and others is the aggressive broker what only want to churn the account.. more money lost their then buy and hold.. ( from what I have seen).. I keep getting calls from them and tell them I have a well balanced BarBell account that produces income for my retirement.. and they keep going on with some very high beta , on earning and no dividend.. I have to buy as it is going up. . right..

Just a thought,
Bi metal Au Pt

[Aman A.K.A. Ahamburger]

No doubt, yet the ones that have the KISS approch seem to be able to control their emotions in times of panic...

[Deleted]

Jun 8, 2011 22:52:19 GMT -5 Aman A.K.A. Ahamburger said:

No doubt, yet the ones that have the KISS approch seem to be able to control their emotions in times of panic...

Panic? No.....Been waiting for this correction for months

Hoping to see 10800-11000 as downside

And have a lot of good viable picks to plow into as the prices become more reasonable

Buy low and reinvest as dividends are paid

That is my KIS system ;D

[Small Biz Owner]

Those that stuck with the market after the Great Depression were repaid many times over!

Back in the Great depression the USA was a creditor nation.
We are now a debtor nation

The only thing that "saved" the USA markets back then was WW2. We came out of it unscathed, then we went about rebuilding the rest of the world.

In the mid 1950's Detroit made 95% of the cars in the world.