John Makin, AEI

Yoshie Furuhashi furuhashi.1 at osu.edu
Sat Jul 14 09:10:52 PDT 2001


Doug says:


>Carrol Cox wrote:
>
>>Doug Henwood wrote:
>>>
>>>
>>> Forget the Dow - try the Nasdaq .... one of
>>> the great bubbles in financial history, now burst. This is much more
>>> representative of first, the mass psychology, and second, the average
>>> individual investor's portfolio.
>>
>>What are we talking about when we speak of "the average individual
>>investor"? Also, how "mass" is that mass"?
>
>Well, 50% of U.S. households have some money in the stock market,
>either directly or through mutual funds. For almost all those people
>the sums are pretty insignificant in macro terms - some 95% of
>stockholdings are held by the richest 5% of investors - but they're
>pretty big in their personal lives. That 50% more than doubles the
>figure that prevailed through the 1970s and into the 1980s.

Why the doubling? Because of the rise of 401k plans?

Yoshie



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