Stock Market Yeild Historically Positive : Fear & Ignorance Drives People Out

Ignorance breeds fear and fear guarantees failure on matter what the situation. To succeed in any endeavor, one has to be prepared to make decisions that will effect outcomes. How else can a person make good decisions other then gathering knowledge of the subject? Knowledge is power to succeed.

Fear of the unknown is probably the greatest failing of the human spirit and drives many people to remain struggling for prosperity. Knowledge of the stock market and it's history of overall gain is lost on the ignorant and fearful.  

As studies show, and the polls substantiate, nearly halve of the population is willing to give up freedom to chose for them selves a life of prosperity for promised security that historical has proven never to come true. And yet, millions that vote each election for security promised by progressive socialist democrats never fulfill that promise. 

Who knew? More then 47% of the population today will vote for the socialist democrats to bring more promises of security, but will deliver only more failure and pain. This has gone on for decades but so many among us still seek the easy road of dependency.

This November, vote for success and prosperity for everyone, vote out the socialist democrats responsible for America's decline and dependency. There are no other options!

Holding onto Stocks during the Recession Yielded Benefits
Source: Josh Zumbrun, "Bad Stock-Market Timing Fueled Wealth Disparity," Wall Street Journal, October 27, 2014.

October 29, 2014

From 2009 to the present, stock values have almost tripled. Some investors reaped these benefits, while others -- many of whom had bought stocks when prices were rising in 1990s and the 2000s -- sold their stocks as the market tumbled, taking large losses.

Over at the Wall Street Journal, Josh Zumbrun reports that individuals' divergent responses when the stock market fell during the Great Recession is one reason behind growing wealth gaps, with many individuals and families simply selling their stocks at the wrong time:

• Looking at the bottom 90 percent of households, the share of households with stocks fell by 4.4 percentage points. According to the Survey of Consumer Finances by the Federal Reserve, that is as if 5.4 million households sold stocks.
• The top 20 percent of families are 5 percent less likely to own stocks today than they were in 2007.
• According to a study from University of Michigan economists, households with higher levels of education and the strongest stock portfolios tended to continue purchasing stocks during the market downturn, while other households were more likely to sell.

Those who remained in the market and held onto their stocks benefited greatly. Economist Frank Stafford gives the example of two investors who held $100,000 in stocks in 2007:

• If one of those families lost half of their stock portfolio value during the downturn and sold in 2009, they might have just $50,000 in a savings account today.
• If the other family, which also lost half of its stock value, held onto its stocks, it could have $130,000 in stock today.

By taking their dollars out of the stock market, many families are now unable to benefit from the stock market. According to Jeremy Siegel, a University of Pennsylvania economist, stocks have returned 6.7 percent annually, on average, over the last 200 years -- better than bonds, gold and the U.S. dollar.