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Mom And Pop Are Still Scared To Death Of Stocks

Monday, June 3, 2013 - 9:14 PM
Top wealth chiefs at Bank of America Corp's Merrill Lynch and Wells Fargo & Co say many retail investors are still very hesitant about getting back into equities and are urging advisers at their firms to help reignite client confidence.

Small Investors Still Scared Of Stocks - Business Insider

Look at all the commissions and fees the "top wealth chiefs" are missing out on.
8
ShorebreakShorebreak2,614 posts since
Apr 6, 2010
Rep Points: 14,170
1. Tuesday, June 4, 2013 - 4:48 PM
I think a lot of people forget that many of us were raised by parents who lost everything in the Great Depression and their mantra for us was "Save always and protect your money".  The Stock Market was not the place we were programmed to use as a place to "protect" money.   How people feel about the stock market has a lot to do with the way they were raised and what their families had to endure to survive.  It's difficult to look back at the past and fear our children may have to endure the hard times we tried so hard to protect them against.
3
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,010
2. Tuesday, June 4, 2013 - 5:12 PM
The stock market has changed its nature since the 80s.  It used to be value-oriented investments on companys' fundamental growth potentials.  Now it is an oppotunistic gambling; this casino is filled with professionals, risk-takers, as well as cheaters.  For the recent few years, Fed. is also joining the game with political gains and unfair QE manipulations.

Ask yourself this question: What is wrong with this picture??  Thus one cannot blame Mom/Pop (and all others) to be hesitent to jump in the Titanic. 
6
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
3. Tuesday, June 4, 2013 - 6:44 PM
Right on the mark 51hh.
7
ShorebreakShorebreak2,614 posts since
Apr 6, 2010
Rep Points: 14,170
4. Wednesday, June 5, 2013 - 8:57 PM
Unbalanced portfolios entail their own risks. Too much in fixed-income, you fall to inflation (read: negative real returns). Too much in equities, you may lose in a swan (pick your color) and die broke. I find "age-in-bonds" or therabouts a reasonable compromise. That does mean, perforce, an exposure to equities.

My Mom is 98, came of age in the Great Depression, and still has roughly 20% of her portfolio in equities.
2
BozoBozo137 posts since
Feb 14, 2011
Rep Points: 937
5. Wednesday, June 5, 2013 - 9:29 PM
Unbalanced portfolios entail their own risks. Too much in fixed-income, you fall to inflation (read: negative real returns). Too much in equities, you may lose in a swan (pick your color) and die broke. I find "age-in-bonds" or therabouts a reasonable compromise. That does mean, perforce, an exposure to equities.

My Mom is 98, came of age in the Great Depression, and still has roughly 20% of her portfolio in equities.

Benjamin Graham: Minimum stock exposure at any age in any economic condition: 25% ("Intelligent Investor").

1
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
6. Wednesday, June 5, 2013 - 10:54 PM
Might I note that my Mom is 98 and out-lived Benjamin Graham by many, many years. They were, to an extent, peers (both coming of age at the same time). Just a bit of trivia.
2
BozoBozo137 posts since
Feb 14, 2011
Rep Points: 937
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