Why Are Investors Fleeing Equities? Hint: It’s Not the Computers – NYTimes.com

Why Are Investors Fleeing Equities? Hint: It’s Not the Computers – NYTimes.com.

Nader Nazemi, Bill Gross, Pimco, Nader Nazemi

Bill Gross Pimco

Let me offer a more straightforward explanation of why investors have left the stock market: it has been a losing proposition. An entire generation of investors hasn’t made a buck.

“The cult of equity is dying,” Bill Gross, the founder of Pimco, wrote in his monthly letter last week.
“Like a once bright green aspen turning to subtle shades of yellow then red in the Colorado fall, investors’ impressions of ‘stocks for the long run’ or any run have mellowed as well,” Mr. Gross wrote. His letter came after he had sent a Twitter post that read: “Boomers can’t take risk. Gen X and Y believe in Facebook but not its stock. Gen Z has no money.”
Consider this: Of 878 students at 18 high schools across 11 different states surveyed by the Financial Literacy Group, three-quarters of them said they agreed with this statement: “The stock market is rigged mostly to benefit greedy Wall Street bankers.”
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s