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"I think we've lost another generation," says Steve Leuthold, with the money quote in yet...

"I think we've lost another generation," says Steve Leuthold, with the money quote in yet another article about the retail investor not coming back to the stock market. These "Death of Equities" stories are getting tedious, but probably important to note for the contrarians out there.
Comments (8)
  • wyostocks
    , contributor
    Comments (7699) | Send Message
     
    Ever think the retail investor has realized the game is fixed?
    5 Oct 2012, 09:32 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Well you take into account the HFT crash in Kraft yesterday..and silver and India today.....who wants to play in this casino...
    5 Oct 2012, 09:32 AM Reply Like
  • Tack
    , contributor
    Comments (12958) | Send Message
     
    So, let me get this straight. The young, who have many years of earning and saving in front of them, are going to eschew equities. Instead, they're going to make one of the following choices in the alternative?

     

    Treasuries - near all-time high prices and offering negative (below inflation) real returns? Corporate bonds only slightly better.

     

    Cash - offering zero nominal return and negative real return?

     

    Gold - they're avoiding equities because of "risk," but they're going to buy an asset which generates no income and pays no dividends and is highly volatile and purely speculative?

     

    Real Estate - didn't they just learn that housing is dead "for decades" and dangerous, too, so that's out?

     

    Guess what? I think they'll be back to equities a lot sooner than any doom-and-gloom prognosticator predicts.
    5 Oct 2012, 09:38 AM Reply Like
  • wyostocks
    , contributor
    Comments (7699) | Send Message
     
    Tack
    The young have no money to invest.
    5 Oct 2012, 09:41 AM Reply Like
  • Tack
    , contributor
    Comments (12958) | Send Message
     
    wyo:

     

    Oh, please....

     

    There are/will be very successful people, sufficiently-financed people, and losers. Every individual will choose in which camp he or she resides. It's the same as it always has been and will be. Amazing as it may seem, we're not the "last generation."

     

    Consequently, there will be jobs occupied, babies born, houses bought, savings and investments made, and life will go on. People will have to make choices for investment growth, and the proclamations of "lost generations" will be rendered absurd, as usual.
    5 Oct 2012, 09:50 AM Reply Like
  • kmi
    , contributor
    Comments (3992) | Send Message
     
    I'd suggest a different consideration.

     

    A big part of equities investment by many is effectively coerced via the offerings of 401k plans (mutual funds that focus on equities obviously).

     

    There seems to be a big difference in the structure of the economy since the last recession, wherein many have reduced or stopped contributing to their 401k.

     

    Let's not forget the percentage of people with 401k or similar plans makes up the lion's share of the invested public.

     

    Those not compelled to use a 401k seem to prefer CD ladders and debt over equities, and have usually tended to do so anyway.
    5 Oct 2012, 10:43 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    They will buy the new Apple product every month...they think that IS investing
    5 Oct 2012, 09:45 AM Reply Like
  • Jin teee
    , contributor
    Comments (113) | Send Message
     
    There is no such thing as "lost" people.
    There is such thing as "lost" money.
    The problem we're dealing with is credit collapsing into reality creating a shortage of "paper" wealth. Couple this with human obsolescence.
    People are people and life goes on, but money then is not the same money now. Today and in the future, money will be harder to earn, less in quantity, and there will be less saved. This discrepancy between people and global money supply will cause depression.
    5 Oct 2012, 04:27 PM Reply Like
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