Did Bad Stock Judgment Add to Income Inequality?
It is the single most fundamental pieces of investing advice there is: buy low, sell high. It also may be the single most ignored piece of investing advice there is, and in the wake of the most recent market crash, ignoring it exacerbated an already yawning equality gap.
Far too many Americans sold out of the stock market at the bottom of the crash, in 2009. They missed the entire rally, and as a consequence, as Josh Zumbrun detailed this morning on the MoneyBeat show, they contributed to the widening equality gap between the haves – who by and large held onto their stocks – and the have nots.