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bjbj Hello everybody and welcome to another episode of Erickson TV. Curtis here with Lauren.
Hey Lauren, I was reading an article in today s USA Today, which is nice and colorful. It
was an interesting article because it talked about investing in stocks. And then it says
in the byline, Forget About It. Here s an interesting statistic: back in 2008 was the
big stock market crash and then the subsequent recovery. We ve been talking in many of our
episodes about where there s been a net outflow of equity funds. What I didn t realize is
that back in 2001, statistically 58% of every household either held individual stocks or
stock mutual funds. Since 2008 as of this current year, only 46% own stocks and mutual
funds. So what do you think? That is really telling because we have had a recovery too.
And interest rates just kept going down. We often talk about different kinds of studies.
We talk about the dalbar study or we talk about outflows from mutual funds and all this
other kind of stuff. Okay here s a really concrete, easy to understand statistic about
how people do the wrong things with their money. When the stock market was at its peak,
58% of homes owned some sort of stocks or mutual funds. Now, when do they sell? At the
worst possible times. Now we re down to only 46% of households owning some kind of stocks
or mutual funds. It doesn t get any blunter than that. Curtis doesn t necessarily get
involved in these kind of arguments but on my internet forums, a lot of people argue
that when we say that investor returns for retail investors are lower than the actually
market, people say oh those things aren t really true or those things are biased or
you re making up numbers. Okay, well we re not making up this number. This is concrete
proof. There is no way to get around this. We ve seen a massive drop in the number of
people owning stocks at all and they sold at the worst possible times. And even though
the market has improved dramatically, it s up 102% since the bottom, people haven t gotten
back in. So for the long term ramifications, from a cash flow liquidity point of view,
it seems like if past history repeats itself, they ll start dipping their toes back in after
it starts getting up to a certain level. That s probably exactly what will happen. Those
that stay disciplined will reap the rewards of long term investing plus the rewards of
rebalancing by buying when things are lower. And those that don t stay disciplined will
just take all the risk and not get returns. And if we look at the future for trying to
build a sustainable retirement portfolio, we truly believe you have to have elements
of equities and stock in that portfolio. So if you in the audience have been scared out
of the market or have materially changed your investment philosophy because of this fear,
you should contact Lauren or myself to have a discussion about that. Alright thank you
very much for watching this episode and we ll see you next time on Erickson TV. |m|m|
e]eU h!,K Hello everybody and welcome to another episode of Erickson TV Curtis Erickson Normal
Curtis Erickson Microsoft Word 10.0 Erickson Wealth & Tax Management Hello everybody and
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