zerohedge.com / By Tyler Durden / 12/27/2012 22:18
The death of the ‘cult of equities’ was a popular topic this year among both fringe blogs and the best-known institutional asset managers and sell-side strategists. As AP discusses in this excellent article, ordinary Americans – defying decades of investment history – are selling stocks for a fifth year in a row. It’s the first time ordinary folks have sold during a sustained bull market since relevant records were first kept during World War II. The answer is both complex and simple but summed up best by a former stock analyst’s comment that in order to buy stocks “You have to trust your government. You have to trust other governments. You have to trust Wall Street, and I don’t trust any of these.” With Fed policy trying to force investors back into stocks (at any cost), a former fund manager notes, presciently that, “When this policy fails, as it will, baby boomers will pay the cost in their 401(k)s.” Are we the new ‘Depression Babies’? We suspect so.
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