What You Must Know About Where Markets Are Headed & Why
Fitzwilson: “Younger investors might wonder why those of us who lived through the 1970’s regularly revert back to that decade for insights. For one, it was when many of us launched our careers. Most importantly, the investment and political environments with which we grapple today were largely born in the actions taken in that 10-year period. We believe that it is crucial to understand how similar and yet how different the markets, politics and the economy were from the present if we are to navigate the the world of today successfully.
At the start of that decade, very few people had any significant wealth….
“Wall Street was focused on serving that relatively small percent of the U.S. population that owned the vast bulk of wealth that had been accumulated by previous generations. That wealth was held primarily in financial assets. Post-World War II programs to expand home ownership had been successful, but a house was seen as an expense, not a wealth generating vehicle. The Baby Boomers were just coming on the scene, so that their primary source of wealth was derived through after-tax savings from wages.