Actionable news
All posts from Actionable news
Actionable news in WHR: WHIRLPOOL Corp,

Cramer: Why American investors don't trust stocks anymore

As much as Jim Cramer loves eqities, he knows investors have lost trust in the stock market.

It was clear to Cramer that stocks are now a disgraced asset class when he saw a recent Bankrate survey that indicated real estate and cash as the most popular investments.

In the survey, 1,000 adults were asked what they would do with their money if they didn't need it for 10 years. A quarter said they would buy real estate, 23 percent said they would keep it in cash. Only 16 percent said they would put it into stocks, which was the same percentage as those who would choose to hide money in gold or precious metals.

"As someone who has lived and breathed stocks for most of my life, this is a horrendous finding. But it's not surprising," the "Mad Money" host said.

Successive waves of mistrust, abuse and fear have now become ingrained into the American public, he said, which has now caused investors to flee the market. For many years prior, stocks were regarded as the mainstay of a retirement account.

Investors fears rose as tech stocks dropped precipitously during the dotcom crash of 2000, dragging the broader market down too. Many...