7 Years After Crisis, Americans Still Spooked Over Stocks

Investors Center ^ | Jun 17th 2015 | Rich Smith

[expat_panama]

U.S. flags fly over the New York Stock Exchange early Tuesday morning Jan. 22, 2008. Seven years after the financial crisis (and six years after Warren Buffett declared it to be over), Americans are still leery of getting back into stocks.

That's the upshot of a poll recently released by Gallup, which confirmed that while no longer quite as negative on stocks as they were a couple of years ago, American investors still haven't returned to the levels of stock ownership seen before the crisis -- or even in its immediate aftermath.

Once Burned, Still Shy

In the run-up to the financial crisis, Americans threw care to the wind. Despite having been burned just a few years earlier by the "popping" of the dot-com bubble, Americans at the dawn of the financial crisis were more devoted to stock investing than ever before.

Just before the bubble burst in 2000, 62 percent of Americans owned stocks (either directly, through a mutual fund, or through a 401(k) or IRA plan). Undeterred, investors proceeded to pile right back into the market post-bubble. By the time the financial crisis hit in 2008, stock ownership levels had exceeded pre-bubble levels -- hitting 65 percent.

Fool Me Twice ...

This, however, marked the high-water mark on investors' patience. One year into the financial crisis, stock ownership levels plummeted 8 percentage points to 57 percent -- and kept on falling all the way into 2013, finally bottoming at 52 percent.

[expat_panama]

bottoming at 52 percent

That's a higher percentage that that of Americans who're employed.  Funny we never see articles about "Americans Still Spooked Over Jobs".  Related article: Don’t let market fear scare you out of stocks

 

[Pollster1]

I am “spooked” over stocks and will remain spooked until a real president is elected. If Hillary (or Bernie the Socialist) wins, I’ll stay out of the market. If we elect a patriotic American, I’ll get back into the stock market.

[uncitizen]

People don’t have any money to invest for one thing.

[expat_panama]

In the mean time yestereday's indexes are up as are today's futures (indexes +0.37%, metals +1.05%).  Plenty of reports though to stir things up...

8:30 AM Initial Claims
8:30 AM Continuing Claims
8:30 AM CPI
8:30 AM Core CPI
8:30 AM Current Account Balance
10:00 AM Philadelphia Fed
10:00 AM Leading Indicators
10:30 AM Natural Gas Inventories
 

[Eric in the Ozarks]

Dividend paying stocks make up 20 percent of our portfolio.
No complaints.

[Buckeye McFrog]

Plays right into the Theresa Ghilarducci plan that the Dems have to take over everyone’s 401K. Cause ya can’t trust them Wall Street types, ya know.

[Diana in Wisconsin]

Diversification is your Friend!

Stocks, Bonds, G&S, Land, your own water source and Ammo. :)

[CIB-173RDABN]

I suppose if you have the time to investigate buying stocks is okay. But my view on wall street is they are worse then Indian Casinos (at least you get drinks and a floor show at the casinos).

The market is rigged by the large investors who can make stock rise or fall in value (which ever way makes them the most money).

[expat_panama]

People don’t have any money...

Honestly, that's far more close to reality here.  The loopy leftist press has (among others) two cherished lies, one is that America recovered after the '09 disaster and the other is that stocks are a 'risky scheme'.  Reality is that the average American has less inflation adjusted money now than it did before and that means less $ for investing.  mho...

[moovova]

I miss the early ‘80s when having a savings account was like having a part time job.

[expat_panama]

at least you get drinks and a floor show at the casinos

We see this unfortunate point of view --that earning is no different than 'winning'-- a lot with poor helpless people.  In fact, the Spanish language has no word for "earn", they just say the employee "wins" his salary.  The good news is that the American tradition is hard work and earning wealth whether it's in the labor markets or the capital markets, as both are needed for wealth creation.  So instead of copping out with not having time to investigate employers because the job market's rigged in favor of the big guys, Americans work hard and love it.

They also know there's money to made in casinos too, as owners:

Symbol	Company Name	3-month Change
IKGH	Iao Kun Group Holding Co. Ltd.	93.08%
ISLE	Isle of Capri Casinos Inc.	50.19%
SGMS	Scientific Games Corp.	46.28%
WTCG	W Technologies Inc.	40.00%
UWN	Nevada Gold & Casinos Ltd.	20.71%
FLL	Full House Resorts Inc.	15.07%
NYNY	Empire Resorts Inc.	14.60%
MCRI	Monarch Casino & Resort Inc.	13.46%
EGT	Entertainment Gaming Asia Inc.	12.82%
CHDN	Churchill Downs Inc.	12.65%

[expat_panama]

—and always making sure there’s time to spend w/ good friends ;)

[cgbg]

Corporate books have become a pack of lies thanks to phony accounting rules. There is no way to evaluate a company’s books today.

At least in a casino you know what the odds are.

[Diana in Wisconsin]

In the bunker! :)

[EvilCapitalist]

My guess is that the American public is finally starting to figure out what Quantative Easing is.

[cherry]

I’ve been spooked since bammey arose to power....yes, my money is listless...but yes, my money is still there...