Author Topic: Could This Be Why the Middle Class Is Disappearing?  (Read 3015 times)

loco

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Could This Be Why the Middle Class Is Disappearing?
« on: June 06, 2017, 11:37:25 AM »
BB related since the average getbigger is Upper Class with social guilt issues.

Could This Be Why the Middle Class Is Disappearing?

Stock ownership levels may hold the answer.

But what if these factors (stagnate wage growth, high debt, and poor saving habits) aren't what doomed the middle class? What if, in fact, a lack of trust in the stock market is to blame?

According to a recently released survey from national pollster Gallup, total U.S. stock ownership, either individually in a portfolio, in an IRA, or through an employer-sponsored 401(k) retirement plan, has dropped by 8 percentage points between 2001-2008 and 2009-2017 to 54% from 62% for U.S. adults.

What Gallup's findings appear to imply is that the middle class hasn't fully participated in the stock market's eight-year long rebound, while the wealthy have taken full advantage by staying invested. This could partially explain the widening of the wealth gap that we've witnessed between the middle class and the rich over the past decade.

Buying high-quality stocks over the long term is a good bet for success

Time and again the data show that staying invested over the long term -- even through major bear markets -- and buying stocks at regular intervals, regardless of whether the market is at a new high or well off its highs, is the most effective way to generate wealth.

Though stock market corrections happen somewhat often, they're not in any way predictable. Yardeni Research has found 35 such stock market corrections in the S&P 500 since 1950 of at least 10%, when rounded to the nearest whole number. However, a majority of these corrections were wiped out by a rally within weeks or months, and every single last one of the 35 previous corrections in the S&P 500 has been firmly left in the rearview mirror. Stock valuations tend to head higher over the long run, which means middle-class households should remain invested, too.

An analysis conducted by J.P. Morgan Asset Management last year really laid out the case for staying invested during volatile markets. The investment firm analyzed returns on the S&P 500 between Jan. 3, 1995 and Dec. 31, 2014, and found that if an investor bought and held the S&P 500 over this entire 20-year period, he or she would have gained 555%, or 9.9% per year. Mind you, this 555% gain includes both the dot-com bubble bursting and the Great Recession, when the S&P 500 experienced respective losses of 50% and 57%.

By comparison, if an investor wound up missing just 10 of the best trading days over this more than 5,000-day trading period, he or she would have seen their gains more than halved. Miss a little more than 30 of the best trading days, and you'd have lost money.

If the middle class in America wants to recapture its share of wealth and retire comfortably, it'll need to get over its distrust of Wall Street and start investing in stocks.

The middle class will also need to start saving more. A mere third of Americans, according to a 2013 poll from Gallup, are keeping a household budget. Complimenting a better saving habits with a long-term buy-and-hold mentality would be a win-win for investors. Most budgeting software can be found online, making it easier than ever for Americans to formulate a budget that can put more in their pocket, and their portfolios, each month.

https://www.fool.com/investing/2017/06/05/could-this-be-why-the-middle-class-is-disappearing.aspx

sync pulse

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #1 on: June 06, 2017, 03:04:42 PM »
You have to have discretionary income to buy stock...Far fewer have such now days.

That is the situation I find myself in.

el numero uno

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #2 on: June 06, 2017, 03:11:54 PM »
The article is biased as hell.

El Diablo Blanco

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #3 on: June 06, 2017, 03:21:17 PM »
The market has only gone up because the rich dumped money in early and cashed out when the poor schlub invests and it tanks.

ratherbebig

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #4 on: June 06, 2017, 05:17:38 PM »
how about just rich and poor?
it has worked before

Mr Anabolic

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #5 on: June 06, 2017, 05:20:12 PM »
Nonsense.

When you are driving take a look at the amount of kids in peoples cars.  Whites have 0-1 kid, Hebrews and Hispanics have 3-5 kids in the car.  

This is why middle class is disappearing.  

cephissus

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #6 on: June 06, 2017, 09:46:43 PM »
Do people still believe in a "middle class"?

???

Mitch

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #7 on: June 07, 2017, 07:30:29 AM »

Man of Steel

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #8 on: June 07, 2017, 08:00:25 AM »
You have to have discretionary income to buy stock...Far fewer have such now days.

That is the situation I find myself in.

It's really this simple.  I recall after the market tanked in '08 and '09 and stock prices collapsed and millions were homeless and/or out of work many just scraped by for years to come.  No investment cause they were preoccupied with buying food, clothes, shelter, etc.....  Once the economy rebounded I recall a leader at my company saying "sure wish I had a million dollars to invest in company stock when the market collapsed and the stock price plummeted cause it's sky high now!"  Well duh, don't we all LOL!  Even though the wealthy sustained losses they still had income with which to invest when the market tanked.....hence the wealthy stay wealthy and the poor often remain poor.

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #9 on: June 07, 2017, 08:04:18 AM »
It's really this simple.  I recall after the market tanked in '08 and '09 and stock prices collapsed and millions were homeless and/or out of work many just scraped by for years to come.  No investment cause they were preoccupied with buying food, clothes, shelter, etc.....  Once the economy rebounded I recall a leader at my company saying "sure wish I had a million dollars to invest in company stock when the market collapsed and the stock price plummeted cause it's sky high now!"  Well duh, don't we all LOL!  Even though the wealthy sustained losses they still had income with which to invest when the market tanked.....hence the wealthy stay wealthy and the poor often remain poor.

yep

HockeyFightFan

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #10 on: June 07, 2017, 08:07:29 AM »
The last two generations turning into adults are too fucking lazy to work to get to middle class standards of living, they would rather sit at home, take government handouts, work 12 hours a week for $15 an hour, and play video games

ratherbebig

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #11 on: June 07, 2017, 08:09:02 AM »
well if one is suppose to go balls out in the gym theres not much energy left for work...


HockeyFightFan

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Re: Could This Be Why the Middle Class Is Disappearing?
« Reply #12 on: June 07, 2017, 08:13:35 AM »
well if one is suppose to go balls out in the gym theres not much energy left for work...



That's why we schmoe marry for money!