Poll - The Stock Market and Vintage Sales

[Snowman]

Originally Posted by Peter_Spaeth

I mean there's a lot of play in it, but what you say makes sense. So is someone in that range going to change their buying habits because of a bad month on Wall Street, do you think?

It seems like most here are conflating the stock market with retirement portfolios. But that only makes up about half of the market allocation. A significant percentage of the value of the stock market is also used for annual compensation of the workforce. Especially in the tech space. Out here in Silicon Valley, RSUs, ESPPs, stock options, and annual bonuses often make up about half of an employee's total compensation (and sometimes significantly more). When the markets take a hit, people make less money. I just sold about 250 shares of company stock last month. Today, those shares are down about $100 per share compared to what they were at when I sold them. Had I waited another month, that would have resulted in me having $25k less to spend on cardboard, vacations, Hello Kitty toys for the daughter, and designer handbags for the wife.

When there is less money to go around, less money goes around. It's simple economics.