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.
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.
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