(This is an excerpt from an article I originally published on Seeking Alpha on April 20, 2012. Click here to read the entire piece.)
American Public Media’s Marketplace has a partnership with Gallup called “Attitude Check.” On April 19, Gallup appeared on Marketplace to announce the latest results of its poll of the saving and investing habits of Americans. They found that retail stock ownership is at its lowest level since 1998.
Gallup asked the following question of adults aged 18 and over: “Do you, or jointly with a spouse, have any money in the market through an individual stock or a mutual fund or a 401(k) or an IRA?” Today, 53% of Americans answered yes to this question. In 2002, a peak 67% answered yes. In 1998, it was as low as 60%. (It was not clear whether the polling started in 1998). This answer is significant because 401Ks and IRAs have been increasingly touted as vehicles for saving money for retirement.
This poll corroborates all sorts of data that has tracked declining trading and investing in stocks by retail investors. {snip}
Of course, no one is surprised anymore by these statistics given the roller coaster ride in the stock market since 2000 that has resulted in a stock market going nowhere over this time. For passive investors who dutifully dollar-cost average, the opportunities to buy at the market lows have squeezed out positive returns. {snip}
Source for S&P 500 month-end prices: FreeStockCharts.com
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on April 20, 2012. Click here to read the entire piece.)
Long SDS and SSO calls