8 ways investing is broken

Even with stocks at multiyear highs, trading volume is low and everyday investors are staying away. Here's why we're still on the sidelines.

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VIDEO ON MSN MONEY

219Comments
Sep 18, 2012 5:48AM
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 Everyone and anyone can make money in the market.. First of all , we have our 401k's invested in the market and we're doing great now a days.

I bought FORD at $ 1.83-ish, I'm making a fortune,even after I sold half of it @ $ 11.00

Should have stayed in for the long haul.

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This MSN "op-ed" article was probably written by some 23 yr old with NO saving or some should-by retired 60 yr old LOSER that blew his money at the track.

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The market is for everyone, not just the "rich" . Just ask any retired Teacher on a PENSION getting a free ride every year. The market invests MOSTof the  UNION pension funds.

Sep 18, 2012 4:22AM
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Gone are the wild and crazy days of the Clinton era where a monkey could throw a tart at the board and make money. Days that would occasionally return over $100K. Now the market has recovered; so have I… plus some. There are no more $100K days, however, occasionally I can still manage $25K. The market may not be for us little guys anymore, but with good stocks, funds and bonds one can still manage. I find that fear is the worst enemy of today’s investor who bails if the market turns down, and he/she loses. The same investor will miss the upturn by getting back in late and lose.

Sep 18, 2012 4:12AM
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reap what you sow!  You can thank the Jews like Madoff and the 100 behind him that didn't get charged and are still in control of the stock market and their schemes to get everyone else to do everything for them because they are superior like nazis.

Sep 18, 2012 4:01AM
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As long as the government is going to keep manipulating Wall Street, how can anyone tell how erratic it can become?  With the global economy and the sell out of American jobs, soon there will not be anyone to invest in Wall Street and there will be no one to pay the taxes for government and all the entitlements they want to keep giving out.  I do believe we are on a fiscial cliff and it will be more apparent after election day.  How can anyone throw their hard earned cash into the stock market and take the risk with Bernanke constantly revising the course and manipulating it?

 

The government just does not get it, America cannot compete in a global economy with different standards of living.  If you do not believe it look where the jobs are going and the ones that left.

 

Americans keep selling our technology to other countrys becuase of cheap labor, Apple and others, there is not an end in sight including General Motors, Chrysler you name it. 

 

The big retail stores, do not want to pay full-time workers to avoid having to provide insurance and other benefits, it is all the scam so they can run with their profits to Wall Street.  They continue to do this because their is no incenitive to provide health care or retirement plans etc.  Those days are passing quick for the few companies that are left.

 

It will be all these factors and the government not controlling the spending that take us to the cliff, no one wants to invest in American jobs or Americans not even retail.  It is like Ron Johnson and JCP, he immediately is taking out people to minimize paying healthcare or pensions or benefits period.  He only cares about the bottom line, but that isnt working so well for him.  It is over and over with American corporations going down this road.

 

When there is leadership and incentives to do the right thing we as a nation will then re-group to re-gain our Anerican way...otherwise...the government will be forced to do reduce the budget, there will be no one to pay the taxes to support it and no one to provide the funding for the government.

 

We have no leadership in government that understands this, they keep trying to fix the problem by creating jobs and doing this and that, the real answer is getting our American businesses to re-invest in Main Street again.  The goverment is trying to fix the sympton and not the underlying issue...they sold us out with free trade, now they do not know what to do.

 

The Chinese are working on their Panda vehicle, at $7800 to $9500, saying it it is good enough for their population, while our automotive brains have added so many features to the new vehicles, the average Z generation doesnt want the expense, insurance, and then the local/county state governments charging annual property tax out the wazhoo...everytime the government sees something to tax they take it out of control.  Why buy a new car and be subjected to these county/local governments taxing the living hell out of it in annual personal property tax to support their bohemeth government knuckle heads.

 

 

Sep 18, 2012 3:55AM
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Is the stock market rigged? The stock market can be very profitable if you have insider info like our ethical politicians do. Their success rate was a phenomenal 90% plus especially on stocks that would be affected by their legislation. Fortunately the Stock Act was recently passed which now forbids this but fails to curb the selling or trading of insider intelligence to other individuals by elected officials. Go figure....
Sep 14, 2012 12:24PM
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That stock market is nothing more than a grand ponzi scheme. The economy is at the top of this one!
Sep 14, 2012 12:22PM
Sep 14, 2012 12:11PM
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Despite the drawbacks, the biggest problem is poor investing. Lots of people wait for the market to soar and then go in near the top. When the market falls, they sell in a panic, losing plenty of money. Next, these bad investors sink money into funds with high fees, making it near impossible to even match the S & P. I'm not a big fan of actively managed funds. You give up too much control, ie. stock selection, capital gains, investment philosophy, management. Last, most people invest more than they can tolerate losing in the short term. I keep certain monies out of the market. And I keep cash which rises as a percentage as a bull market matures. Wait for the next recession to hit and go all in with the cash as big caps become a bargain. I never try to sell as markets fall...things come back if you're patient. Rather double up the best stocks I own. Use same advisor for last 10 years and pay only 0.75%. Usually own 30 to 40 stocks so any one or two stocks that do poorly will not drag down the whole account. I fill in with index funds to maintain some diversification and only Vanguard. Most important, I never have false or unreasonable expectations. Going for home runs usually requires higher risk then I'm willing to take.
Sep 14, 2012 12:04PM
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The Dow isn't up...it's back to pre crash levels of 4 years ago. Some of my wifes stocks are still struggling to recover.

Sure..buy and hold....how much of a hero would you have been if you told someone that 5 years ago?  God forbid you needed to use some of that principle a year after the market took its giant dump in '08.   Yea..I know..don't invest money you can't afford to lose. So much for 95% of most peoples savings.

The sad truth is it could ALL vanish tomorrow...and no one would be accountable. The stock market today is no better than any casino. Place your bets...

 

 

Sep 14, 2012 11:23AM
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What  IS broken is these boards that allow these ads for webSites.
Sep 14, 2012 11:21AM
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The market is not broken, it has evolved. So should the small investors.
Sep 14, 2012 11:07AM
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Semms simple enough, Just make it illegal to buy and sell the same stock or ETF in less than a week.
Sep 14, 2012 10:59AM
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The best policy is still keep investing in good companies ... stable with reasonable, reliable dividends.
Sep 14, 2012 10:49AM
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This article is right on, I for one am out of the market,looking for a good CD.

 

Sep 14, 2012 10:44AM
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I don't know about the rest but I research heavy on about 10 stocks then look for a wave( low and high points) I put buys in just above the low and sells just below the high and watch it go. I don't claim to be a great investor but I'm up about 30% for the year. Stocks go up and down that's just how things go. When I do the sells I sell enough to get back the investment and keep the free roll shares. Seems to work for me.
Sep 14, 2012 10:37AM
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Good article.  You'd never know it was so broken what with the market skyrocketing.  Someone is having a party and 99% of us were not invited.

 

 

Sep 14, 2012 10:01AM
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The stock market is America....it is where companies get the money to expand and create jobs.

With a market that is viewed as 'fixed' by many/most investors the money will not be there for corporate expansion...JOBS.

What is needed is a way to basically eliminate 'skimming' money out of the market by flash traders and short traders,particularly the naked short selling. At the same time enhance the SEC's ability to investigate all other fraudulent trades.

This is easy to do, just add a one cent per share 'user fee' (this is not a tax) for every share traded. The fee would go to the SEC for enforcement of security laws.

This would virtually eliminate 'flash trading', and most short selling and provide for orderly markets, that would restore faith in the markets by retail investors..

 

 

Sep 14, 2012 9:37AM
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Good article. It all comes down to trust. I can’t imagine what Wall Street could do now to get mine back. They know it won’t happen too. That’s why their entire strategy is shifting away from the private sector to the public sector and central banks now. It’s all about manipulating the Fed and government involvement in the markets. It’s logical. When true investors will no longer take the abuse, Wall Street turns to their government to force it upon them. And that’s why you will earn 0% on your money market accounts until the balance sheets of all the big banks are shored up. If you think the latest policy announced by the Fed yesterday has to do with anything but that goal, you are in for a rude awakening one day.     

Sep 14, 2012 8:30AM
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The next bubble? Wall Street?!?!?!  What a concept, huh?

Sep 14, 2012 6:33AM
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Stay the course, your article is on the right track. So the textbook response to recession is buy into it and hold until recovery, but anyone with half a brain could see there is more happening this time. We have seen massive job terminations and a sell-off of assets and aspects to foreign interests who also import what we lost. That's not recession, it's terrorism. The incredible growth in the markets since is predicated on GW Bush redesigning the currency so he could authorize more of it and raised the debt ceiling repeatedly to accommodate it. Simply, instead of using the additional dollars to restructure the dynamics of Main Street, banks- including financial houses that are now banks- invested all that cash overseas. I have no clue what pocketprotector and the other pickle juice drinkers are talking about in the comments below mine. There are indeed at least 8 ways the markets are artificially inflated and a threat to national stability. We have NO Main Street right now and will be forced to replace workers in the workforce (like a time out swap of talent) to create the type of revenues needed to cover the interest on what we owe. Job 'creation' won't cut it. Since we realized such moves in 2008, the national divide has become a chasm. Review your history. We'll need to either remove about 360 million people from America so that the remaining 40 million have the false elitist economy they are driving us to or a pimple popping event that takes them down so 100 million families can restore the type of America we once were. Meanwhile... China has us in a bind and Europe (where all of Bush's fiat money is buried in bad debt) will go bust before the year end. These things said, what sort of idiot believes he can hoard metals, load up on stock & bonds and keep crapping on the rest of the nation, while being too old and out of shape to fight his way out of a paper bag? Our best bet is to trash the vessel that breeds the control and manipulation as we recognize our peril and soberly start back up from the bottom of this Abyss we are in.

 

Close the banks. End the Federal Reserve (pretty sure this one got really popular yesterday) and get rid of Wall Street. It's about job recovery... right now, and a true reconciliation. The Dow isn't worth 2,000, it has no value to the People of the United States any longer.

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