The United States...Poverty Machine?

I was reading another great Gregor Macdonald post over the weekend entitled ‘Poverty Soars in California.’

I live on an island, by a navy base so I don’t see the poverty that Gregor talks about, but I see it in the California local news every day.

The market has been rising, but it feels like nobody is particpating. I watch the steepness of the rise and it feels like a giant momentum chase. People were worn out by the markets. Mutual Fund outflows have been going in the wrong direction for years. The easy monthly money flows to 401k retirement accounts has stopped as even working people hoard cash or live off their savings after losing their job and ability to contribute.

I am a bull by nature, but I strongly agree with this ending thought from Gregor:

You have to factor big thoughts like this into your investing playbook. I have been writing the last three weeks about how this momentum can’t last. Something has got to give based on our policy.