Stimulis is not for Eveyone! A humorous take on the stimulus package

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2 Responses to Stimulis is not for Eveyone! A humorous take on the stimulus package

  1. brian young says:

    paul

    terrific network!

    One issue I have not seen discussed generally is the effect of a possbile decline in our equity culture. Conventional investing wisdom has evolved over the decades to saying (requiring) equities should comprise 50-70% of a given portfolio. I’m under the impression, but don’t have these stats, that 40 years ago conventional equity allocations were much lower…10-20?

    Most of the investment commitees I’m involved with are actively reducing equity exposure and moving to various credit products. This may a signal of a market bottom. Or it may be a secular trend where the “buy the dip” mentality has been broken . The impact on overall equity pricing wd be enormous and take a long time to play out.

    best

    brian

  2. Paul F. Miller, Jr. says:

    Brian..I’m convinced that the equity culture, as you call it, has been seriously dented. However, many of the participants don’t yet realize how much. Many are still actind as if this bear market is just another bump in the road. But try to tell the guy who is 55 and has seen his 401k go to hell in a handbasket. His attitude toward stocks has probably changed for the rest of his life! Or the college whose endowment has decline now threatens the very well-being of the place. Will they quickly go back to an 80% equity ratio?

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