Occupy Wall Street should just protest anyone who is wealthy. Our country was built on capitalism and so many of the millionaires today are self made. They had an idea or product, believed in it, and took some action.
I agree with business magnate, Mark Cuban, Occupy Wall Street should talk with shareholders and align with them. They should go to shareholder meetings and voice their concerns. And they should continue to go to Washington and protest.
There is frustration among the Occupy Wall Street protesters. There is a huge gap between what CEOs get paid and what employees get paid. It's too bad that educated Americans graduating from great American universities can't get jobs and feel like they have no hope for their future.
As this movement grows, it will most likely affect your financial plan. Here is my list of how Occupy Wall Street could affect your financial plan:
The U.S. stock market could face more mid single digit returns. That could affect your financial plan for retirement.
- For the U.S. stock market to go considerably higher, the financial sector needs to be one of the sectors to lead the rally. Banks face a series of headwinds: more regulation, less fee income, and exposure to the European financial sector.
- The growth will continue to come from countries like Brazil and China.
- U.S. stocks may have priced in higher tax rates for corporations. Corporations will have to pay more in taxes, which will affect how much they can reinvest back into their businesses.
- Emerging markets (Brazil, Russia, India, and China) may be where investors turn for double digit stock returns.
Many people who can't get jobs are taking matters into their own hands. They are starting businesses and beginning to take more ownership in their human capital - their ability to produce income based on their unique skill set. Consider modeling a financial planning scenario where you start your own business, and use that income to save for your retirement.
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