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Why invest locally. Lesson learned from Wall street

posted Aug 24, 2015, 9:18 AM by David Khorram   [ updated Jul 3, 2018, 10:23 AM by Admin Account ]

Why invest locally. Lesson learned from Wall street

Today ( 8/24/2015), I woke up at 6:00 AM California time and I read this " Households just saw $1.8 trillion in wealth vanish".

We have been advocating to do what chines do. Buy American businesses and invest in American Real Estate. Your Local investment is easy to monitor and manage ( Now the article.

You may have seen headlines to describe the market carnage like a trillion dollar’s worth of wealth wiped away in a single day. But it’s worth noting just how much is held by Americans in the stock market in the first place.

MarketWatch took a look at the Federal Reserve’s financial accounts of the United States report for answers — and did some back-of-the-envelope math.

As of March 31, households and nonprofits held $24.1 trillion in stocks. That’s both directly, and through mutual funds, pension funds and the like. That also includes the holdings of U.S.-based hedge funds, though you’d have to think that most hedge funds are held by households.

Using the Dow Jones Total Stock Market index DWCF, -1.41%  through midmorning trade, that number had dropped to $22.32 trillion.

In other words, a cool $1.8 trillion has been lost between now and the first quarter — and overwhelmingly, those losses occurred in the last few days. This will probably be the worst quarter for stock-market destruction since the third quarter of 2011, when $2.8 trillion was wiped away.

It took four quarters for the stock market to bake that wealth back into equities

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