Tuesday, August 25, 2015

Cheer Up! $13 Trillion Sitting on the Sidelines!

August 25, 2015
Forbes: Why The Market's Pullback Signals Good News Ahead

On the other side of this downward momentum is all of the cash that has been sitting on the sidelines waiting for the aforementioned pullback to occur before allocating more investment dollars to the market.

There's $13 trillion sitting on the sidelines in MZM money stock! Just imagine what will happen when that money stock is put back into the stock market! Up! Up! Up!

Here's how it will work on a smaller scale. Picture two investors.

Retail Investor A has $1000 in cash.
Retail Investor B has $1000 worth of stocks.

Retail Investor A buys the stocks from Retail Investor B.

Retail Investor A now has $990 worth of stocks.
Retail Investor B now has $990 in cash.
Wall Street now has $20 in trading fees.

Woohoo! See how much more prosperous everyone is now? We just need to repeat it until all $13 trillion is spent on trading fees.

We also need to convince Wall Street to physically burn the money and not spend it on more luxury yachts. For if they spend it, then it will end up right back on the sidelines, yet again. Go figure.

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