Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

a 10-year equity bear market at least is in the offing?

Analysis: Baby boomer fears cast another pall over markets
On Wednesday September 7, 2011, 9:22 am
By Michael Dolan

LONDON (Reuters) – Even as anxiety over policy inertia, banking and sovereign debt crises dominate the headlines, a long-festering concern over the impact of aging Western populations on stock markets is returning to add even greater gloom.

Hopes are dimming for a resolution of the worst ravages of the 2007-2009 credit shock before the mass retirement later this decade of the “baby boom” generation – the outsized population cohort born shortly after World War Two.

For many convinced of the long-term power of demographic trends on financial markets, the fuel for ever-rising stock markets is already evaporating fast and a 10-year equity bear market at least is in the offing.

These long-held concerns are now critical in a decade where the 79 million U.S. people born between 1946 and 1964 start retiring as soon as this year and larger boomer retirement waves build to peak around 2020-2022.

The concern is that the ebb and flow of U.S. stock markets over the past 50 years is highly correlated with the available pool of household savings channeled into equity investment.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.