Investors withdrew a staggering $33.12 billion from domestic stock market mutual funds in the first seven months of this year, according to the Investment Company Institute, the mutual fund industry trade group. The New York Times is reporting a withdrawal of the 'average' middle American from the stock market. Does this come as a surpise to you? I hope not. After all America has been withdrawing from Middle America for over a decade.
The question is, why is this happening? Is it just a lack of confidence by the average American? Or is it more?
More is the optimal answer. Education in America is not only suspect, is is suckspect! America for all of it's braggadocio is suffering from it’s own government indulgences.
When you have a requirement via SAT and other ‘testing’ government offices that all, ALL, students pass a math requirement to know and understand and be able to spew out College Math, algebra, and more we have a morass of inefficiency bulging at it’s own seams!
How many of you have EVER needed to use that math you were forced to learn in high school? I’m betting almost none. And if in decades of teaching and training virtually NONE of us have had to, been able to or even desired to use any of that skill then possibly America is on the WRONG TRACK!
Instead, why not make INVESTING in the stock market a required class? I have taught numerous seminars and asked the question of INTELLIGENT people, how does your stock broker make money? The answer is startling – most think it’s off of the profits they earn for you in investing your money! We all know that is NOT the case but why do so many Americans think that? Lack of knowledge.
Why are so many pulling out of the stock market? Fear! Fear because they truly lack the knowledge of how the stock market works, what makes it work and how they might be able to work within the system to make it work for THEM!!!
Without this basic knowledge of how the market works more and more of us will be pulling out of the market for our own safety and security and in so doing change the future of America.
But it’s not only the MATH or Stock Market it’s our entire ed system. How can we be expected to know the market when most of America can’t balance a checkbook or reconcile a bank statement.
Let’s stop looking to see how we are matching up in math with the world and get back to how are we matching up in America with the American citizen.
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