I recently read an article suggesting the "equity cult" may be dead. Meaning investor appetities for stocks may be shifting, are shifting AWAY from equities, into Bonds and other types of investments.
AFter stocks topped in 1929, it took 25 years for stocks to regain their highs.....maybe that sparked a new stock love affair.....and it was long enough for people to forget the fated crash of 1929 and ensuing Depression.
Since 2000....for most stock positions have gone nowhere, or returned very little compared to bonds.....driving 10 year yields down to 2.4% recently....why settle for that when 10% equity yr/yr returns WERE the norm?
Because a HUGE dent has been put into LTBH (long term buy and hold) and many have been FORCED to take money OUT of 401k's, let alone keep money flowing in....others have increased bond fund mix vs stocks....and in 10 years have been brutalized by 2 big bad BEAR MKTS.....even 2009 rally has not healed that pain.....maybe partly why VOLUME is so thin...cept on the down days.
DID the stock cult get derailed in 2000 or was it just 2007 (marginal new SPX high)?
Where will the BUYING volume come from to push equities ahead? from the FED?
D
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