Dumb money wants to get in

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BOSTON (MarketWatch) -- Last year, for the holidays, Anne finally got a computer. Shortly thereafter, she was reading a column online which talked about the historical returns of stocks and bonds, and she printed it to show her husband Don.

Don took the information to heart. Recognizing that a portfolio made up entirely of bonds and bank deposits is not likely to earn as much as a portfolio of stocks over time, he now wants to move all of the couple's liquid assets to stocks.

http://www.marketwatch.com/News/Sto...-A32B-4F1B-9469-FDFF19D1B54D}&dist=TNMostRead
 
Interesting read. In their 70's and now want in the stock market. WOW. Guessing those cd's and fixed annuities aren't holding up too well against inflation after all!

Should more and more 'dumb' money flow in, the indexes could head higher. Since 'dumb' money usually only goes long, could get interesting if this is the norm!
 
Says Lassus: "It's never too late for someone to make their first move in the market, but they should watch out for 'first cruise syndrome,' where a person who gets seasick on their first cruise never wants to go again. They need to understand that a few rough waves do not mean they have to abandon ship, at which point they can stay on board and, in the end, enjoy the trip."

I wonder if the seniors that bought yesterday died today?
 
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