Key insights
- The author expresses a bearish view on the US stock market, citing concerns about wealth inequality, insider trading, and dilution of shareholder value. They claim many individuals are losing faith in the market and shifting investments to safer assets like CDs and real estate. This negative sentiment, while anecdotal, suggests a potential headwind for equity inflows and overall market participation.
More and more people that I talk to are losing faith in the stock market as a vehicle to make money. My friends and colleagues tell me that whatever money they make in business, fixed investments and personal sales seems to evaporate with stocks! The valuations of the stock market keep going down, mainly because the wealthiest are selling all the time, creating new shares and diluting shareholders, and intentionally bankrupting the companies. Unless you're an insider, there is no way to make money in such an environment.
Personally, I make money betting against America! It's not my preferred way of investing, but if it works, why mess with it? Most of the people I talk to have no interest in shorting, and they've even cussed me out for being a shorter. I return their anger with a suggestion that they too can short and there is nothing wrong with it. It's just a way to make money if you do your homework and you get rewarded when you're right. Why hate the player?
Anyway, people are not trusting this market because the wealthy just get wealthier, politicians make money with illegal insider trading and only the people that bet something will fall make money. And so they tell me that they don't invest or trade anymore, and put all their money in CDs or are buying real estate. When I mention stock market investing, nobody seems interested.