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View Diary: "79% of investors have no trust in the financial system." (154 comments)

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  •  Corporations no longer know what (6+ / 0-)

    business they are in.....

    The typical CEO in a publicly traded corporation no longer plans for long term success.  I no longer hear of "out year" planning with investment follow up.

    Instead, what the average investor sees is many corporations downsizing their labor and making workers take pay cuts based on trying to raise the value of the company stock.  And that reaction to the price of their stock is yearly, if not sometime quarterly.

    Investors can no longer look at publicly traded stock as long term investments since nothing is long term in the corporate world.

    Therefore, traders do the same.  They invest on shorter and shorter time periods.  Lack of corporate planning results in lack of trust.

    When corporations are run again by CEOs that have bottom up knowledge in that business and are more interesting in making widget X better than anyone else and lay out a 20 out year plan, then the market will react positively for the long run.   Young people with money will invest in a corporation for 20 years or more and sell when it comes to retirement.

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