Skip to comments.Stocks Are the Only Option for Investors: Jack Welch
Posted on 02/14/2013 7:56:36 AM PST by ExxonPatrolUs
Investors are being "forced to get back in" the stock market, former General Electric chief Jack Welch told CNBC on Thursday.
"You're sitting there waiting. You're getting no money. Your CDs are doing nothing. Treasurys are doing nothing," Welch said in a "Squawk Box" interview. "What do you do?"
"Everyone's decided they can't get yield so they have to go in the risk trades. ... There's no question, you're forced to get back in." He also said this is happening despite a stock market performance that's "clearly ahead" of the "real economy."
Welch, founder of the Jack Welch Management Institute, said, "This economy is a 2 percent type economy."
"This is not a bad economy," he added, "but it's nothing like the stock market."
Welch argued that the stock market is artificially based on where investors put their money. Nobody's fighting the easy money policies of the Fed and other world central banks, he pointed out. "There's liquidity everywhere."
Hey - What's wrong with the FR topic selector?
The guy is right. If you want a return, the Stock Market is it.
Money in a cd earning.50% is actually losing 3.50% every year through inflation at todays rate. When hyper inflation hits fuggetaboutit.
So people are trying the market again knowing that they may be wiped out there too.
The stock market (or cash) with a hedge position in guns and ammo.
Which is worse...losing two percent this year on a money market or CD through inflation, or losing FOURTY percent when the market crashes?
These are low information investors and we are them.
About 90% of Wall Street investment is from institutional investors (banks, hedge funds, insurance companies, etc). These guys use automatic electronic investment software and make literally millions off of fractions of cents.
With the Eurozone so unstable (now, including Germany), the stock market nearly the last place I'll want to be.
The final pump and dump to make sure small, unsophisticated investors get left holding the bag.
The pros sell at the top, get out early and then buy up the same shares they sold at the top and a fraction of the price they sold for at the top of the market.
There are some less volatile stocks such as liquor and cigarettes which pay a decent dividend and are more likely to survive the coming plunge and will recover more readily after it. At a minimum the dividend assists in retaining the value of what was put in and stop loss orders can reduce the risk further.
I currently get 5%+ on MO and close to 3% on RGR. MO has been a long term hold and bounced back from the fall in 2008/09 as expected, RGR has been a good call for me more recently. In both cases I have done better than if I held cash or CDs. However I’m on a cash basis in the 401K and other holdings as I won’t play the mutual fund game while the funky is being played.
Invest in your own education and building your own business. Also, in supplies and ammunition.
You can't fool us any more, Jack - we don't have much left to steal. You are going to have to take steps to renew the productive capacity of America if you ever want the gravy train to return to what it was a decade ago. That may mean the people you represent have to sacrifice their short-term numbers in exchange for longer-term gains. I know it's anathema to them, but try to talk them into it. Really, an economically stronger America will be best for all concerned in the long run.
Urging us to keep trading our gold for your counterfeit paper just isn't going to work very well, in these times.
Is it just me, or does anyone else remember 2008? Given the state of the economy and what congress will or won’t do, I’m giving serious through of getting at least 50% of my equity funds into cash, even though I won’t be getting anything.
I’ve just got this terrible feeling that with the sequester and a probable downgrade in the credit rating (again, even though the government sent a shot across the bow of S&P with their law suit), I’ve just got a nasty feeling about it, and I’m just now back to where I was in 2008!
Jeez, the whole damned thing seems rigged, where the criminals are the ones making all the money (John Corzine anyone?)
as the dollar devalues, anything measured in dollars increases
things that have intrinsic value, like gold, only reflect the change coupled with demand
so the question is... are they moving to strengthen the dollar or weaken it? have they done, or have they planned to do, anything that will increase the dollars strength? anything?
the only answer is: no
therefore, the dollar will weaken as they print more. what effects will this have? gold will hold its value, which means it will move up as the dollar devalues or down as people cash in to put dollars into stocks to catch the wave. but once the wave is over, the last place you want to be is dollars.
That’s not true. There are tangible, income producing assets that you can purchase. That’s why rental properties are hot now. Invest in a business or some equipment or do like some smart people did and buy some rifles on spec and then sell them. There are many things you can do to earn a return on an investment other than stocks or money markets.
And you can trace the whole Ponzi scheme back to public sector pensions. I figure ilk like the SEIU stole 40% of my wealth in the form of home equity. And from 2006 on, after the dems took control obama was their proxy to complete the grand theft.
Lets see, put my hard earned money on a rigged table in a casino or do without...
Darn, hard decision.
Bears repeating. When they start saying its time to get in, RUN AWAY, RUN AWAY.
Just seemed like a time to take profits and sit on the sidelines until the inevitable correction occurs, then buy on the selloff...
I'll take Irrational Exuberance for 500, Alex.
Anyone who invested in ARs and ammo is making a killing....so to speak.