Earlier this week, a New York Times article came out that really caught my attention. It was disappointing to see the typical economic spin that encourages people to invest with the financial services industry NO MATTER WHAT taken to such great lengths, but was also encouraging to see that the article was in response to a terrific new trend by their customers. People are really starting to catch on that it’s not a good idea to invest in the stock market, especially not at this time, and have been pulling their money out. Now, that’s great news.
I’ve been saying for a long time now to get out of the stock market as the risks are currently just too high and the devastating loss of people’s assets over the last 12 years is far too likely to continue. I’m so relieved to see that people are finally starting to take action.
I want to take a moment to break-down the extent of the dishonest spin put forward by the article. For starters it asserts that, “American stocks have doubled in price in the last three years”. Well, here are some more facts: In the last 12 months the stock market has gone up only 1.5%, with inflation at least 2.5%. Since January 1, 2000 the stock market has gone up a whopping 3%. That’s 3% in total for 12 years versus inflation up over 30%. The article’s carefully selected date range is extremely misleading, to say the least!
And sadly, for years and years tens of millions of American’s have trusted and bought the spin and just kept on dutifully losing their money to the industry. In fact, on average, American’s have seen a 50% loss of the assets they entrusted to the advice of the financial services industry over the last 12 years.
I am so glad to see the tide starting to turn! It was so good to read that, “In April, the average daily trades in American stocks on all exchanges stood at nearly half of its peak in 2008”. Also that, “domestic stock mutual funds, which were drained of more than $400 billion since the start of 2008, compared with an inflow of $52 billion in the four years” and that “the outflow has continued into 2012”.
It shows me that people are seeing the truth and are beginning to depend on themselves. This is truly the way to achieve financial success. Depend on yourself, not any stock market, government and especially not on the advice of the vast majority of the financial services industry.
Millions like me never bought into the financial service industry’s losing game and are doing just fine, having avoided losing money through market drops. We rely on ourselves to spend smart, save a lot of money and see to it that our money is invested successfully. If you haven’t already joined this growing group, what are you waiting for? It’s time to take full control of every aspect of your money, do what works and live the life you set out to live. As for what works, it’s laid out on www.moneysmartonline.com and covered every week on my radio show. Happy reading (and listening).