This type of investing isn't about day trading following the latest hype. It's about putting some surplus money to better use for when you need it in 10-20 years.
That's even worse, because the entire point of the stock market is supposed to be that investors choose where to put their money based on how the company is performing and what they're saying. I.e., you vote with your wallet, and the market therefore punishes bad behavior and rewards good behavior.
If everyone is passively investing, that no longer works. Then it's not even a market. We don't even know, for sure, if that works.
There are people who don't invest? Do they just keep their retirement savings in cash? I imagine for most people either the government or their employer invests for them.
Most of my family and extended American family doesn’t really invest. I think probably 10% of us “believe” in the stock market. The rest sometimes buy houses (which I encourage because it’s better than nothing), but otherwise are planning on social security, pensions, and lump-sum savings to cover their retirement
Incredible HN post. I'm hoping it's because you are from a country where people are generally well taken care of.
Yes, there are people who don't invest. Where do they keep their retirement savings? 40-50% of Americans, at least, simply have no retirement savings! Most people in America aren't earning enough to put away a meaningful amount for retirement. It's going to be grim as boomers and millennials hit retirement age and have to keep working.
If everyone was an "investor" it means they aren't blowing all their spare cash on goods and services. Demand drops and you need fewer people to work to provide said goods and services. It kinda balances out.
RealStickman_|4 months ago
array_key_first|4 months ago
If everyone is passively investing, that no longer works. Then it's not even a market. We don't even know, for sure, if that works.
koakuma-chan|4 months ago
loloquwowndueo|4 months ago
pinkmuffinere|4 months ago
micromacrofoot|4 months ago
1 in 5 have $0
50% have enough to cover 3 months of expenses
whoooboyy|4 months ago
Yes, there are people who don't invest. Where do they keep their retirement savings? 40-50% of Americans, at least, simply have no retirement savings! Most people in America aren't earning enough to put away a meaningful amount for retirement. It's going to be grim as boomers and millennials hit retirement age and have to keep working.
linhns|4 months ago
triceratops|4 months ago