2 replies to this topic

[OEXCHAOS]

I hate to have too much company in any trade.

[qqqqtrdr]

Mark:   How is this calculated?   I can see it can be skewed to the wealthy has more in the market so brings up the averages the numbers could look this.   Is this what it looks like for the median family?

[OEXCHAOS]

Mark:   How is this calculated?   I can see it can be skewed to the wealthy has more in the market so brings up the averages the numbers could look this.   Is this what it looks like for the median family?

I can't address that. I haven't seen a white paper from JPM. That said, I'm pretty sure what DOES skew this is the increased participation in 401k plans over the past few decades. I'd not read much into the "record high" stock ownership, so much as the general range. Something else that likely skews this very much is artificially low interest rates.

So, the warning sign to my eye, is that we're at very high levels of stock ownership, despite having risk free interest rates much higher than they have been in recent years.

 

And absolutely do NOT use this as a timing tool. Just a condition indicator.