How to get the individual back into equity markets.

Discussion in 'Economics' started by KINGOFSHORTS, Aug 11, 2010.

  1. Individual investors shunning equity

    Investors counting on dividends more than ever.

    I think the only way to attract investors back to the equity market will require the following.

    #1 Companies will need to focus more on paying dividends than trying to prop up stock prices. Back in the days people only went for stocks if they paid a proper dividend, many many more companies paid dividends compared to today.

    Dividends in general are more honest, As long as you get your dividend and can live off that income, you do not have to concern yourself regarding todays minute by minute stock price.

    #2 End of stock options, the whole printing more shares via Stockoptions to hand out to insiders and then announcing "Buybacks" using cashflow is nothing but a sham and a big shell game. All you are doing is using shareholder money to enrich insiders.

    #3 Stop the foolish overpriced aquisition sprees that typically return a horrid ROI, (Microsoft buying Danger is a good example) Instead return the excess cash flow back to investors.

    #4 Focus on longterm not short term price points on the stock, as long as your company earns money, dividend payments will do the rest.
  2. I think number 1 is the only way it ever happens.

    Sharks eating sharks....
  3. Sad cause the only folks making a return are us traders, everyone else is watching 401Ks providing horrid returns.

    But You are not gonna see individual investors go back into stocks until the feel that the markets is not a casino that is manipulated by insiders.
  4. 1. Individuals need to STOP putting their money into ETF's. ETF's will *never* put any pressure on management to "do the right thing".

    2. Stop handing your money away to "managers" who keep siphoning a portion of it every qtr/year.

    3. Tell "Wall St. & the rest of the S&P corp "executives/crooks" to fuck off.

    4. Don't buy any stock or bond *unless* it's DIRT CHEAP!

    5. STOP buying shit!

    6. Tell American news media, including CNBC to take a hike.
  5. Yes.

    I am priviledged to talk to one money manager who is in his 60`s. Been on the St since his twenties. And another man who writes a newsletter who is in his 70`s. Been on the St since his late teens! They both concur with the "casino" sentiment. They think HFT is the canary in the coal mine.
  6. slow reporting by CNBC again, liquidity is non existent now, money inflow is almost zero, not a drop to drink in this parched desert.

    Only way now is to take rather larger risk and play news events
  7. “I think most retail investors think the market is a sham,” says Michael Bechara, managing director of Granite Consulting Group in Brewster, N.Y. “The less sophisticated arrive at this conclusion via intuition. The more sophisticated realize that a handful of major players are passing shares back and forth rapidly.”

    LOL:D We are doomed.
  8. jem


    Years of:
    pro forma bullshit
    "cash management"
    lies from executive
    Wall street fake advisors on T.V. lying
    CNBC cheer leading
    Hedge fund manipulation then blowing up
    Salesman for stockbrokers
    massive executive pay sucking out profits
    and most of all a complete mistrust of the people who run the street and the government.

    Will do that to a stockmarket.

    Plus... the elephant in the room.

    It was a game of musical chairs considering the demograhics and now no one can advise you should be in the market for the next 20 years.

    not unless you believe the generational transfer will cushion the baby boomers future need to live off what meager assets they have saved.
  9. Boomer cheered on the whole offshoring of jobs and deficit spending as long as they can cash out at the top before they retire and kick the can down to their grandchildren.

    Except it went wrong, it is like lighting a short fuse on a stick of dynamite.
  10. Dacamic

    Dacamic Guest

    There is an implication in this thread that there is something wrong with the current weighting people have for stocks and bonds in their portfolios. What is the current weighting of the masses and what should it be?
    #10     Aug 11, 2010