The stock market has reached all time highs. Do all Americans benefit from this? Who does then?

Answer 1

Um, in case you haven't noticed, the numbers have backed down for several days.

Do all Americans benefit from this (stock market highs)?

Do you expect an all-or-nothing thing? As with most things, some do, some don't, and that is as it should be. Think of the lottery, you don't win if you don't play. If you aren't invested in stocks, then it doesn't matter. Many, not quite most, Americans could care less and that is just fine. Part of the problem though, is that some of their pension money is in the stock market, so people who don't own a share, nor are interested in doing so, have something to gain (or lose) by the market in that way. Insurance companies make extra money for their policy-holders or stockholders by investing the pool of money from which they will pay claims when it is called for. Until they have to pay money out, the money they take in is out making money, much (not all) in the stock market.

The list goes on and there are people who benefit that don't realize it, even though they are not directly involved. But if they don't want to be directly involved, they don't have to. I got a speeding ticket a while back, but I don't expect that everyone needs to participate in that.

Answer 2

The dollar has also fallen to an all time low against the euro. So are we really gaining anything?

The dollar has fallen so far in the last several years against most major currencies and even minor currencies like Colombian peso, that the market rising is just an illusion. Why has oil gone up so high? It's partly because the same dollar buys much less now.

However, a lot of American companies do have significant operating income overseas. So holding American companies isn't that bad.

Answer 3

Americans who participate in the economy beyond just buying stuff will benefit if the stock market rises steadily. A rising stock market makes people more optimistic, so companies are more likely to hire more people, and individuals are looser with their money (especially individuals with growing portfolios), so that helps people who sell to consumers.

On the other hand, a severe and/or long decline in stocks makes people more pessimistic, so things balance out.

Answer 4

The performance of the stock market is a good indicator of a healthy economy. The Dow Jones Industrial Average is a good example of this because it includes stocks in huge companies that represent several industries (Wal Mart, Exxon, American Express, etc.). Everyone in the country benefits indirectly from a healthy economy.

Answer 5

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