There's a theory retiring baby boomers cashing out will cause a 'dark period' for the stock market

  • 📰 CNBC
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 72%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Jefferies analysts discuss an economic theory that the impending wave of baby boomer retirements could trigger a U.S. equity slump.

Jefferies analysts resurface an old economic theory that the impending wave of baby boomer retirements could trigger a decadelong slump in equity prices.

Such a mass exodus, so the theory goes, could entrench the stock market in a "dark period" for years until younger generations save enough to start repurchasing the assets their grandparents sold. What's more, it's not certain boomers will sell stocks and get more conservative with retirees living longer than ever. But there's no denying the boomers will be market force, it's just not certain how they will impact the markets. Right now, workers over the age of 55 years represent a near-record 24% of all U.S. employees, according to the BLS.

"Market participants may anticipate that equities will perform poorly in the future, an expectation that can potentially depress current stock prices," they wrote.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

There's always buybacks and the Plunge Protection Team to keep the markets artificially propped up.

Oh you fucking think? You mean inflating asset prices to all time highs with helicopter money from the fed is a bad idea long term?

They have been cashing out, for the last two years. That's not what is fueling the stock market.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why a sideways stock market could indicate the highs are yet to comeBears contend the stock market’s largely sideways action over the last year signals a top may already be in. But that would be out of keeping with recent... Um, sure bud. Just look away comes time to reveal Q3 earnings. Funny how quiet it is right now. Show me 1929!
Source: MarketWatch - 🏆 3. / 97 Read more »

5 things to know before the stock market opens MondayWorries over global economic growth were set to thwart Wall Street's run to record highs on Monday. Whichever way the market swings, it’s certain, the Uber-rich will get richer ... that’s a fact of our wealth-entitled economy ~ shameless fat cats 💰💰
Source: CNBC - 🏆 12. / 72 Read more »

Here's what happened to the stock market on MondayStocks were barely changed. American Express gained, but Netflix was a notable laggard.
Source: CNBC - 🏆 12. / 72 Read more »