The government created retirement accounts that gave hundreds of millions of everyday people tax free/deferred money to put away for their golden years. These IRA’S, 401ks and other account are to good to not participate in and with SSI in question, you would have to be crazy not to.
What no body talks or thinks about, is every year almost a trillion more dollars goes into these accounts. The accounts are limited as to where this money can be placed and most of the account holders elect to use stock brokers to manage their money/accounts. Bouncing back and forth between bonds and stocks and a new $1,000,000,000. coming in each year what could go wrong? The stocks and bonds have to go up every year as the money has to go somewhere.
Unless, the people get scared, not invest it, leaving it in cash waiting for signs that the investing conditions are improving. Remember, brokers make their share of your money by moving it around several times a year (commissions).
Is this all starting to sound like a game? What if everybody used stop loss targets at 1% of the security cost, would there be no market fluctuations more than 1%?
Who makes all those billions of dollars that are lost every day? They say the markets are balanced, for every optimistic buyer their are pessimistic seller’s, does that mean that bad days in the market billionaires are made?