ordinary investors tend to follow most recent

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Unformatted text preview: would it take to attract investors into the stock market, assuming no gifts? 1-2% per annum. 3% means twice as much money over 25 years. – Q21: What do you currently expect? • Surveys/Questions/Usage: – Where do participants get their opinions from?? – Ordinary investors. — Tend to follow most recent experience. 15%/year in 2000. – McKinsey Corporate Consulting. — 5% to 6% – Social Security Admin. — 4% – Professors of Finance. — 4% to 5.5% – Ivo Welchi-san. 2%. – WSJ, February 2005: Gov. Corp. Name Organization Stocks bonds bonds William Dudley Goldman Sachs 5.0% 2.0% 2.5% Jeremy Siegel Wharton 6.0% 1.8% 2.3% David Rosenberg Merrill Lynch 4.0% 3.0% 4.0% Ethan Harris Lehman Brothers 4.0% 3.5% 2.5% Robert Shiller Yale 4.6% 2.2% 2.7% Robert LaVorgna Deutsche Bank 6.5% 4.0% 5.0% Parul Jain Nomura 4.5% 3.5% 4.0% John Lonski Moody’s 4.0% 2.0% 3.0% David Malpass Bear Stearns 5.5% 3.5% 4.3% Jim Glassman J.P. Morgan 4.0% 2.5% 3.5% Talk about Jeremy and Bob—and how Bob always predicted a crash, but was head on in 2000 with his book Irrational Exuberance, which made him popularly famous, too.   10 3 Does the C...
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This document was uploaded on 02/27/2014 for the course ECON 1745 at Harvard.

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