Introduction:Beware of Phantom Wealth1
THE IDEA OF USING STOCKS to solve the Social Security problem seems like a “good, long-term, quick fix.” The idea is so alluring, it just keeps coming up. But before jumping to that conclusion, we should be sure that we understand the problem, retirement plans in general, and what stocks really do.
The Five Main Messages of This Book
This book was written to present five major messages.
- Much of the country’s economy and many of its retirement plans are built on a structure of phantom wealth that depends on stock prices.
- Stock prices are based on projected future events or what people hope will happen, not on actual corporate accomplishments. Using stock prices to measure wealth is like counting chickens ...