- The average American has to work harder than ever to own a share in the S&P (Index.)
- Americans are straddled with debt, making it a lot harder for younger people to invest in their future.
- This is just another indication that inflation poses a real threat to wealth accumulation in the next decade.
Here’s an uncommon statistic. According to market commentator Holger Zschaepitz, it now takes the average U.S. worker over 127 hours of labor tobuy just a single share of the S&P 500.
That may sound reasonable to the uninitiated but a closer look at the charts reveals otherwise:
Notice above that the period between 2019 and 2019 was marked by stable values. As Zschaepitz points out, any mom and pop back then could invest in their future for as little as a Jackson.
The (/ (financial crisis restored the balance somewhat but now as we enter the ratio has climbed more than six times higher than the affordable lows of the ‘ s. ************************** (More Important Things to Worry About Than the S&P) **********************************************************
So what’s going on here? Some responders argue that this is just thenatural state of wealth creation. But that’s a bit of a stretch when you consider that the average U.S. worker has more important things to worry about.
Deutsche Bank notes that half of all Americans are diving into debt just to maintain their living standards:
So unless people are borrowing money for stocks, the average Joe just isn’t buying equities . A recent survey from Gallup confirms this. The percentage of Americans who own stock is down roughly 8 percentage pointsdecade over decade.
CCN recently reported that thelong-term bull market in stocks has made Americans richer than ever. At least on paper and particularly for boomers. But the U.S. economy is also entering its 613 th month of expansion – the longest in recorded history.
So you have to ask yourself one question: which savvy young investor actually wants to pay a sixfold premium for the S&P this late in the cycle?
Inflation, the Silent Killer If Zschaepitz’s chart isn’t evidence enough of worrying US inflation, I don’t know what is. TheFed continues to deny that it existsbut anyone who does not live in a bureaucrat bubble willtell you otherwise:
It’s like there are 2 economies. The one reported and the one that actually exists on the street … No amount of BS can mask the street reality. People are struggling. It’s no surprise thatgold is on a tear. And equally so whybitcoin was just warming up in the last decade. I’m no fortune teller but there surely isn’t a more important time to be well-diversified. This article was edited by
************** (Sam Bourgi) . (************************************** (************************************************************** (Read More) **********************************
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