Most Americans don’t benefit directly from a strong stock market, so they aren’t like to be affected by a major correction. I’d also suggest that “non-essential” spending has been in doldrums for a long time anyway. In fact, this malaise in consumer spending is a big reason for the sell-off on Wall Street.
Most working Americans have 401k accounts. I panicked in 2008 and made major changes after that crash. Should have sat tight and rode the market back up. Plan to do that this time.
Don’t be so hasty there. My 401 is directly affected by the stock market. I didn’t Google how many Americans have them but I bet it’s quite a few.
Lots of folks have 401s and IRAs in stock funds. It won’t sink in until they get their quarterly or year end reports.
When state and local public employee pension funds suffer losses the taxpayers end up paying for it.
I certainly don’t do much “discretionary” spending any more. I remember when my wife and I would go to buy a few essentials and wind up spending five or six hundred dollars on things we saw and liked and that was when money was worth about three times what it is now, maybe more. Now if we spend fifty dollars it is a big deal. We have not bought a vehicle since ‘07 and we bought used then. Now I just dream of upgrading to something less than ten years old. Thank heaven we have sense enough not to get conned into buying a new car with seven years of payments.
“Most Americans don’t benefit directly from a strong stock market, so they aren’t like to be affected by a major correction. “
I think most Americans will be affected- in 2008, many list money in their retirement accounts, like 401ks. Individual companies losing market value will lay people off, cut benefits, etc. Pensions that are in the market can be cut if losses continue. In 2008, quite a few if us were impacted.