Before all the pundants claim they addressed this first, let me be the first to introduce you to this (revised) observation.
The FOMC meeting minutes, and the plethora of interpretations, suggests we're in a financial funk for the next 5 years.
I've got 5.25 CD's good til 13 and 4% EE bonds til the end of time. Both which won't be seen for years down the road.
The above is not for personal gloating but rather to accentuate my point. If the dismal financial picture by the Fed. is projected to go for 5-ish years, then WHERE IN GOD'S GREEN EARTH are the masses to get ANY kind of return on ANY type of investment. BTW, Net after taxes, even worser!!
Therefore, the stock market gains hightened importance. There are 2 Trillion dollars on the sidelines. (question) That money will stay put, or CD's at <1%, or gold, or ?????? during this time projection?
And here-in lies the rub. The proverbial rock and the hard place. Money on the sidelines KILLS the savings / earnings potential of our baby-boomer retirees. Will the Fed. suppliment their income since the market is too risky? Heck, just yesterday they were speaking of INCREASING the age for Social Security.
And the stock market isn't the place to be at this time or any time in the last 3 years. If you think 0% return by being on the sidelines is bad, how about turning your money over to the current (and forseeable future) stock market shenanigans.
You can have the SEC step up to the plate now, or, print worthless MORE currency in the near future to give the illusion of wealth.
Why does this all seem so simple conceptually, but Sooooo difficult for the SEC and our Congressional and Senate friends to address?
So make your choice for the 5-ish years. Watch from the beach or swim with the sharks?