There was a recent report from CNN Money that indicated although the Dow Jones Industrial Average and S&P 500 have reached record highs and real estate prices are rising, people polled do not feel they are any wealthier. This “wealth effect” is a feeling and the result of news and general sentiment. From our 25 year experience at Colman Knight, we see negative feelings shift sentiment very quickly and positive feelings are much slower to permeate society. This lag time on the positive creates investment opportunities prior to bubbles bursting and explains why people do not cease chasing investments until the bubble bursts! How are you viewing the world? Are you feeling the current increase in wealth or do you still experience a poverty mentality?
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The Wealth Effect
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