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Why invest locally. Lesson learned from Wall street

posted Aug 24, 2015, 9:18 AM by David Khorram

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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