Wealth Creation Expert Jason Hartman Says IPO Cancellations Illustrative of Wall Street's Feeble Future

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With 215 initial public offerings delayed or canceled thus far in 2011, corporate fund raising on Wall Street is seen as problematical today

With 215 initial public offerings delayed or canceled thus far in 2011, corporate fund raising on Wall Street is seen as problematical today

The world has intrinsically changed over the past fifty years. Why would anyone expect Wall Street to be immune as it had a massive philosophical shift from income to speculative investing in the 80s?, said Jason Hartman

Going public, holding an IPO and raising operating capital by selling stock shares on Wall Street used to be a rite of passage for growing private companies with a bright future. These days, however, Jason Hartman says initial public offerings are seen as an often dangerous play that could put a substantial portion of capital at risk of being hacked to pieces in the blink of eye.

The 215 withdrawn IPOs in 2011, according to data tracker Dealogic, exceeds the number that were pulled in the 2008 run up to the Lehman Brothers collapse. Only three years removed from what was essentially seen as a once-in-a-lifetime financial catastrophe, this encore performance has surprised experts that it happened at all, much less so quickly. Hartman believes this raises serious questions regarding the validity of the United States stock market as a reliable wealth creator in the current financial climate for businesses and individuals alike.

“This is not your grandfather’s stock market,” said Jason Hartman, host of The Creating Wealth Radio Show and creator of the Complete Solution for Real Estate Investors™. “The world has intrinsically changed over the past fifty years. Why would anyone expect Wall Street to be immune as it had a massive philosophical shift from income to speculative investing in the 80s?”

From an investor’s perspective, it appears the change is not for the better, with the Dow Jones Industrial Average (DJIA) resembling an unhinged pendulum liable to drop hundreds of points one day, only to gain it back the next. Sharper price swings are the order of the day, and occurring more often, leaving individual investors and IPOs well aware they stand to lose a lot quickly with an unfortunately timed venture into what used to be a solidly profitable financial machine.

Debt ceiling bickering. National credit downgrading. Ineffective leaders. Recycled economic policy. Hartman says none of these do much to increase the public’s confidence in the stock market as an institution of wealth creation, so it’s no surprise to find investors’ looking elsewhere to take another shot at the American Dream.

“The place to put your money is into single-family and multi-family residential income property,” advises Hartman. “Despite the national media’s tendency to lump real estate into a single category and claim it’s weak right now, there are several markets with strong income opportunities. The population is increasing and Gen Y, the largest demographic cohort in American history, is moving right into their prime renting years – it’s a perfect storm.”

Hartman continued, “Under present economic policy, there is little chance Wall Street will regain its position as the investment of choice for the average American. There's simply too much wrong with it. The financial services industry had a fabulous run over the last few decades but we may be hearing that bubble pop right about now.”

Jason Hartman advocates the belief that financial independence is available to everyone through the purchase of income property in prudent markets nationwide. Hartman provides embattled stock market investors with education, research, resources and technology to deal with all areas of their income property investment needs.

About Jason Hartman

Jason Hartman, CRS, GRI, CSP, AIPIS, is America’s foremost expert on long-term wealth creation through monetary policy and income property. He is the founder of Platinum Properties Investor Network, The Hartman Media Company, Open Door Auctions and The Jason Hartman Foundation. Jason is an accomplished entrepreneur, public speaker, media personality and author of 11 books.

Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing education, research, resources and technology for income property investment. His highly sought after educational events, speaking engagements and his acclaimed The Creating Wealth Show inspire and empower hundreds of thousands of people in 26 countries worldwide. For information, call 714-820-4200 or visit Jason Hartman online.

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