“Since my election, United States stock markets have soared 70 percent, adding more than $12 trillion to our Nation’s wealth, transcending anything anyone believed was possible — this, as other countries are not doing well.” — President Donald Trump, 2020 State of the Union

In our tribalized society, we are obsessed with dumping groups of people into buckets.

Even more to the point, we microanalyze targeted demographic groups (i.e.., women, men, black, white …).

We also record, register and analyze responses by psychographic groups (i.e., income, education, creed … ).

Almost DailyBrett must stop here and ask: Are we spending enough time considering America’s growing Investor Class?

“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90, and even 100 percent.” And IRAs too, Mr. President.

Who are these people? Are they just the “filthy rich?” Are they just the 1 percent?

Or are they mommies and daddies, brides and grooms, anybody and everybody investing in their retirements, college tuition for their children, dream vacations or to start a new business?

In 1960, only four percent of all shares traded were directly tied to retirements. Today that retirement figure is 50 percent of all the stocks traded daily on the NYSE and NASDAQ.

Almost DailyBrett will once again pose the question: Who are these people? And are we as a society giving them the love they deserve?

According to a 2019 Gallup quantitative survey of more than 1,000 Americans, 55 percent own individual stocks or stock-based mutual funds for their investment portfolios including retirement oriented IRAs and 401ks … and even the few who still have pensions.

Yes stock ownership took a hit during the 2007-2010 financial meltdown, but the trend has stabilized with the tailwinds of a record bull market.

No Fees Today, Tomorrow, Forever

“Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news.” — Paul Krugman of the New York Times upon Trump’s 2016 election

Guess America’s Armageddon was postponed.

Since November 2016, the NYSE has advanced from 18,332 to 29,290, up 59 percent, the NASDAQ has increased from 5,193 to 9,508, up 83 percent, and the S&P 500 from 2,139 to 3,334, up 52 percent.

And how are markets behaving now with a dovish Federal Reserve, Impeachment done, Brexit over, corporate earnings better than expected, robust consumer confidence, full employment and the American economy demonstrating its best performance in five decades?

Even though there always the risk of the Dow Jones Effect (e.g., what goes up at some point will come down), we are talking about a calculated risk … less so by the members of America’s Investor Class, who pay daily attention to the markets and more precisely their portfolios.

The major retail investment firms (i.e., Charles Schwab, Edward Jones, E*Trade, TD Ameritrade, Robinhood … ) have all waived their trading fees, making it even easier for investors of all income levels to participate.

And for investors concerned about the environment, society and corporate governance, there are specific ESG (Environment, Social and Governance) funds.

Publicly traded companies have learned they must not only be concerned about fiduciary responsibility, but corporate social responsibility (CSR) as well. It is more than driving the top-and-bottom lines and projecting a reasonable future expectations (Doing Well), but it’s also being genuinely mindful of a company’s caring for its employees, participating in communities and safeguarding the environment (Doing Good).

To top it off, America’s Investor Class is served by reasonable regulation of publicly traded companies by the Securities Exchange Commission (SEC), which mandates fair disclosure. The Federal Trade Commission (FTC), guarding against false advertising. And there is the Department of Justice, which prosecutes corporate crime (e.g., Enron bankruptcy).

And finally don’t these publicly traded companies make our products and services, employ millions and make our society more efficient? Apple puts a computer in our hands with its clever smart phones. Google is an instant encyclopedia of knowledge. Amazon is global shopping platform. Facebook allows us to keep track of friends and families.

If Something Isn’t Broken, Why Fix It?

Are global markets, perfect? What is?

Are the NYSE and/or NASDAQ playing fields 100 percent level? What are?

Is America’s Investor Class thriving and directly driving our consumer-based service economy? You bet ya.

Then why are there those who want to punitively impose federal taxes on each and every stock and mutual fund trade (i.e., Bernie and Elizabeth)? Who are they trying to punish? The real answer are the mommies and daddies of America’s Investor Class.

Yes, many of these investors are part of the upper class, and even the lower upper. The honorable senators need to appreciate the composition of America’s investor class also includes the upper middle, the lower middle … and each and every person who engages in dollar-cost averaging or continuous investing in both bull and bear markets.

America’s Investor Class puts its discretionary income into the nation’s best-of-breed publicly traded companies to pursue their dreams of happy retirements, highly educated children and/or bucket list vacations.

They matter. They vote. And they deserve our support … not dissing from always angry members of America’s political class.

https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx

https://www.usatoday.com/story/news/politics/2020/02/04/state-union-read-text-president-donald-trumps-speech/4655363002/

https://www.nytimes.com/interactive/projects/cp/opinion/election-night-2016/paul-krugman-the-economic-fallout

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/