The soaring bull market of the past five years didn’t help the economy all that much. A lot of wealth was created between the bottom in 2009 and the peak earlier this year, but very little of it trickled down into the economy. The market boomed, and profits hit record levels. But hiring and business investment improved only slowly. Businesses had plenty of money, but they didn’t want to spend their cash on hiring more workers or building new offices, stores or factories. Sales lagged behind profits. Wall Street partied for five years, but the middle class wasn’t invited. While total wealth rose by $26 trillion, median wealth for households in the middle class actually declined. The bull market mostly benefited the richest 5% of Americans who own 82% of the stock market. Now it seems as if the punch bowl has been taken away from Wall Street’s party, Investor sentiment has turned from greed to fear. Or has it ? ....with the possible push back of rising interest rates?
Posted on: Sun, 19 Oct 2014 14:43:49 +0000
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