The Wall Street Journal today has an interesting article on the impact that baby boomers’ retirement may have on the future of the stock market—“As Boomers Retire, a Debate: Will Stock Prices Get Crushed?” Excerpt:
For tens of millions of baby boomers and younger workers, the basic long-range financial plan is simple: accumulate stocks and bonds while working, then slowly sell them off to keep up a comfortable lifestyle in retirement.
Not so fast, says Jeremy Siegel, the Wharton School finance professor well-known until now for recommending stocks as a long-term investment. In speeches and a new book, he is warning that a flood of boomer retirees with trillions of dollars of assets to sell over the next 20 to 40 years threatens to crush stock and bond prices. He says it will take a massive investment in U.S. stocks by people in India, China and other developing countries to prevent a market meltdown.
You can also access a copy of the article here at jeremysiegel.com.