Global Investing

The wealth effect in reverse

By Reuters Staff
March 5, 2009

This chart shows losses in the Standard & Poor’s 500 index since October 2007. Joseph Brusuelas, a director at Moody’s Economy.com, said from the 2007 peak to the first quarter of 2009, U.S. stock holdings fell $7.6 trillion in real terms. “Our estimate suggests that through the end of March, U.S. stock wealth will have fallen by $66,000 per household,” he said.

- Emily Kaiser

Comments
2 comments so far | RSS Comments RSS

This down trend formation has come from several sideways of the the S&P. 500 index. It can go from now on anywhere. The bottom is hard to predict because manipulation is strong. Several levels of support and resistance would had been drawn from the graphic. But actual results difficult to determine

 

When will we learn that market growth has people [actuaries] that do realty predictions over 25 years +. These people gave the correct answers but the Directors of institutions and Companies decided they knew better and “took pension holidays”, increased dividends, started moving into high risk areas. What happened to the good old fashioned acceptance of receiving +1% over Government Gilt as an acceptable return over a long period? In the end with all the manovering and pain this is what it will be.

 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/