Investing
in stock market is the best way to become wealthy because of the high
return. But apparently American people still trust house market more.
It has been more than five years after the financial crisis in 2009,
most of American people still believe stock market is risky, with the
result that 73% people are not intend to invest in stock. Although
the S&P 500 has more than doubled in value after bottoming
in 2009.
But
the experts said Investing in diverse portfolio is the best
way to grow wealth over a long period of time considering the
inflation. The experts suggested that inflation will
undermine the value of fixed income assets like bonds.
This is not surprising me to me, especially in light of the movie we're watching in class. Dr. Skosples also mentioned how the incredible performance of the market might be an indication that another bubble of sorts is forming. After being so hard hit by the recession, Americans must be very wary of investing with big firms.
ReplyDeletePeople are weary of investing in the stock market because of the recent great recession. Because of this, they are investing in more low-risk things such as bonds and cash. If stocks stay in a bull market, I think we will soon see the 73% drop as investment in the stock market will increase.
ReplyDeleteEver since the housing crash and all of the "AAA backed securities" that were mismanaged and frankly mislabeled (although technically correct at the time) many people are afraid to put their money back into the market. We are really talking about individual U.S citizens... not corporations or private equity firms.
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