Every so often, the editorial page of USA Today asks me to weigh in with a brief comment on a column written by the newspaper’s founder, Al Neuharth. Today, Neuharth writes on the important topic of saving money for college or retirement, and keeping that money in the stock market.
Neuharth says “the stock market continues to be our surest, steadiest investment” despite its ups and downs. Maybe that’s true, which doesn’t say much for the other investments he doesn’t mention — mortgage-backed securities, bonds, real estate, and, before we know it, crowd funding.
But here’s the problem: Investors don’t think the financial markets are fair. They’re not only sick and tired of the motion sickness they get from high-frequency trading glitches that rock the markets. They’re sick of Wall Street lobbyists who have more power than securities regulators; they’re sick of insider trading; and they’re sick of powerful people in finance who can do the wrong thing and suffer minor repercussions. Or no repercussions at all.
My quote in USA Today this morning:
“The public will buy into Al’s good advice once they see that regulators are in charge of Wall Street — not the other way around. Confidence flows in fair markets.” Read article.