The Retail Investor Is Tapped Out

The Wall Street Journal’s “Ahead of the Tape” column this morning (“Late to Party? Small Investors Sit This One Out”) wonders why individual investors have stayed on the sidelines in this bull market.

Here’s my answer: they’re tapped out! Does the Street really think that after mortgages on multiple properties, home equity loans, car loans, credit card debt, retail spending, sky high property taxes, insurance policies, higher gas, utilities, and food prices, that there’s anything left at this point for the stockmarket?!

The fact that retail investors have put what available money they do have into overseas stocks, according to the “Tape” column just like the institutional investors, shows the overseas market has peaked and will be the catalyst that crashes the U.S. stockmarket. Everything in life is composed of a positive and negative aspect, or for every upside there is a downside. In the era of globalization, what adversely affects one country ripples over to the other country.

1 comment:

Anonymous said...

I am certainly tapped out!