Baby Boomers Won’t Pull the Market Down…
I came across an interesting article today that goes against a lot of peoples thinking in regard to this matter.
“Many people are saying that baby boomers will pull money out of stocks for their retirements”, dragging stocks prices down with it. “That’s nonsense, Roberto! In the long run, stock prices don’t change because of such reasons. They fluctuate because of the ability of corporations to create wealth.”
My favorite quote from this article….
“Supposedly learned analysts have warned for years that big-spending boomers haven’t saved enough to support their retirements. Really? This implies that when the poor little boomers reach retirement, they won’t have three cents to pull out of stocks. The analysts can’t have it both ways. If baby boomers haven’t saved enough, they won’t have many stocks to sell, will they?
Besides, boomers who haven’t accumulated enough savings won’t retire at 65. They’ll continue working, generating wealth that causes stock prices to rise.”
Anyway, I’m not convinced either way, only time will tell… To read the full article at the Pasadena Star-News click here.