Of course they will. We will simply have to wait until the market flattens out, then watch it start ticking up while making strong moves upwards. Greed will blind those who were burned and even entice new investors.
True, the very demographics that have been working for the boomers for so long will now work against them, especially if enough young people have now been put off investing their money in equities by the market gyrations of the last 10 years.
The stock market is really no different than Madoff, it requires new suckers to more money into it. Its pretty obvious no on in there twenties or thirties has enough money to keep this thing heading higher. The sp will probably head to 300 and sit there for 20 years.
I'm being serious here - in the U.S., from a demographic standpoint purely, there are about 1 persons under the age of 25 for every 3 baby boomers. If those recently burned, and burned badly, who are great in number (much greater than what happened during the focused 'tech crash,' this is much more widespread), swear off equities (and they're past the point of prime year investing anyways, being in their 50s and 60s), and the 33% of young people who will replace those boomers are told not to ever trust the markets by observation or outright advice by their parents, uncles, aunts, etc., then don't we have a trust and integrity issue now that is - maybe larger than anything we've seen since the 1930s? You literally have millions of Americans who have seen their retirement nest eggs wiped out, just at the time they needed that money most, and with a lack of hope that there will be a V shaped recovery in the economy or equity markets. I forgot to add that they've seen their 1st or 2nd biggest asset - their home, drop precipitously in value, also.
I forgot to add that they've seen their 1st or 2nd biggest asset - their home, drop precipitously in value, also. We're living in unprecedented times, and there's a facade of normalcy that will be hard to keep up in terms of appearances.
First, it is truly sad to see those who are in their 50s plus take a hit like the one we have had. And, emotions can cloud your thinking when watching this video. Second. Even my 401k has a multitude of investment options. They range from HIGH RISK to Asset protection. I was able to move my money when the first wave down started. I have not only recovered the loss but I am up 7%. I took my mom's retirement, a year before the crash, and moved her into BONDS. I did this when we started to see the hick up around 14000 or so. She has preserved her gains of the last 40 years and is slightly up for this year. I know plenty of people, who rolled out of the Stock Market during the first hard sell off, when only rumors of Banking troubels where whispered. So, I do feel for those who rode this all the way down. However, they too are to blame. When the INDU goes from 14000 to 12000 and your still long......its your fault. When the INDU goes from 10000 to 14500 and you do not reallocate your holdings, and take some profit, move it to protection. Then , well it is your fault. If you work on WallStreet or you part of the "Financial World" and you rode this market all the way down, then not only are you also to blame...but your also a idiot. being down 20% after re-allocating your portfolio is better than having your head in the sand and being down 50%. The markets will come back to some level. IMHO 10000 is the highest we may see for the next decade. But there are plenty of othere investment options other than the INDU. Two problems I do see with 401Ks. Is they are "Long" only funds. The second, far to overweight in Small, Mid and Large cap stock funds. Hardly any Hard Assets Funds. Zero Currency Funds. They need to widen the choices and not force everyone to be "LONG". That is the ultimate problem. And I doubt that will change.
The irony is that some of us that already retired stare at the computer screen 6 and 1/2 hours every trading day, day trading , swing trading, trying to protect our funds and/ or make them grow. And some idiots (or maybe lobbyists) call us "parasites", claiming that we do not produce anything that benefits society. Parasites or not, many of us here at ET took the initiative to learn and work hard on managing our earned savings. I have compassion for those individuals on the video and millions like them. But it is not the end of the world. Nobody knows if the worse is over, but better things are coming, as sure as the sun will be seen tomorrow. Cycles, up and downs... the up is coming. Best! From The Safe