Once the brokerage house, rather than the bank, became the locus for American savings, that money would find its way into the stock market, because the broker was someone with a much higher tolerance for risk than the banker.
From Ron Chernow
As the bull market goes on, people who take great risks achieve great rewards, seemingly without punishment. It's like crime without punishment or sex without sin.
Because of the love affair between the American public and the stock market, it is possible for entrepreneurs, technological visionaries and inventors of every sort to get financing.
I have developed a very strong partiality for the dead: they don't talk back, they don't sue, and they don't have angry relatives.
You don't want too much fear in a market, because people will be blinded to some very good buying opportunities. You don't want too much complacency because people will be blinded to some risk.
The public has lost faith in the ability of Social Security and Medicare to provide for old age. They've lost faith in the banking system and in conventional medical insurance.
A lot of the money in the stock market is really our national retirement plan, for better or worse.
I think those who invest in mutual funds want someone else to do the thinking for them. But the fact that they can move the money around the family of mutual funds just through a phone call lets them feel that they can play tycoons.
The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification.
Mutual funds give people the sense that they're investing with the big boys and that they're really not at a disadvantage entering the stock market.
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