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<blockquote data-quote="vantexan" data-source="post: 3305274" data-attributes="member: 24302"><p>It could be a bubble or it could be a new paradigm.&nbsp; With 401k&#039;s money can&#039;t just sit still.&nbsp; No one will participate if their account doesn&#039;t show growth.&nbsp; This system is making upper management of publicly traded corporations very wealthy but it&#039;s also designed to steadily improve retirement funds over time.&nbsp; Doesn&#039;t mean there won&#039;t be hiccups.&nbsp; If demand for products and services dries up then profits to pay dividends does too.&nbsp; If the big funds aren&#039;t going to be rewarded they&#039;ll stay on the sidelines until share prices fall enough that management will do whatever it takes to get profits up and shares bought again.&nbsp; That&#039;s what happened across the board after 2008.&nbsp; The employee suffers but does get ultimately an increase in his 401k.&nbsp; Trump and friends cutting taxes and increasing profits insures the cycle will continue awhile on the upswing.&nbsp; More people with more to spend, more profits, more dividends, the stocks are bought driving up the shares, management exercises options and rakes it in.&nbsp; If inflation hits it&#039;ll unravel eventually.</p></blockquote><p></p>

[QUOTE="vantexan, post: 3305274, member: 24302"] It could be a bubble or it could be a new paradigm. With 401k's money can't just sit still. No one will participate if their account doesn't show growth. This system is making upper management of publicly traded corporations very wealthy but it's also designed to steadily improve retirement funds over time. Doesn't mean there won't be hiccups. If demand for products and services dries up then profits to pay dividends does too. If the big funds aren't going to be rewarded they'll stay on the sidelines until share prices fall enough that management will do whatever it takes to get profits up and shares bought again. That's what happened across the board after 2008. The employee suffers but does get ultimately an increase in his 401k. Trump and friends cutting taxes and increasing profits insures the cycle will continue awhile on the upswing. More people with more to spend, more profits, more dividends, the stocks are bought driving up the shares, management exercises options and rakes it in. If inflation hits it'll unravel eventually. [/QUOTE]

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