The stock market is very important

It’s a little tiring to hear the repeated attacks on President Donald Trump,  accusing of paying oh-so-much attention to the stock market. As if everything he does is designed to boost the markets. To boost his own wealth.

He’s not clever enough.

Besides the markets are hugely important–for you and me.

First, it’s where so much of yours and mine pension fund money is invested.  By the hour, the day and the week, pension funds are taking hits, big ones. All those people with defined benefit pensions need to be concerned. Especially Chicago and Illinois government employees, whose pension funds are at least $140 billion in the hole. Likely a lot, lot more now.

And those with defined contribution pensions mostly depend on the markets to increase or at least safeguard their investments. Retirees and those who are about to retire are seeing the quality of their life diminished. Or worse.

Second, the average American is an important part of the market. Consider this:

Individuals Own Stocks. It is households that own equities, 37.6% of total equities in the U.S., and equities represent households’ largest financial asset holdings at 38.2%. According to the Federal Reserve, 52% of HHs in the U.S. own stocks (65 million households), which shows the figure is greater than one percent of income earners (estimated at 1.6 million households). Our analysis inside this section shows that the low balance reported by the Federal Reserve – median value of $40 thousand for a household’s stock holdings – demonstrates a much wider universe of Americans own stocks.

In more ways than one, we sink or swim together.

dennis@dennisbyrne.net

www.dennisbyrne.net 

My historical novel: Madness: The War of 1812

Comments

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  • In more ways than one, we sink or swim together.

    Tell that to Dems who's only plan was to harass and obstruct since day one.

  • In reply to mancow:

    "To harass and obstruct since day one". Mitch McConnell actually said that was his plan when Obama took the oath of office.

  • the day and the week, pension funds are taking hits, big ones. All those people with defined benefit pensions need to be concerned. mcdvoice survey

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