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One thing not yet discussed here is the demographic profile of the US: Baby Boomers are now retiring. Over the next 20 years, they will be drawing down on thei
by MicroBerto 10y ago
One thing not yet discussed here is the demographic profile of the US: Baby Boomers are now retiring.
Over the next 20 years, they will be drawing down on their retirement accounts, putting slow yet constant negative pressure on the market.
Japan has had similar pressure and it is one thing that contributed to the Lost Decade.
- __derek__ 10y agoI wonder what kind of effect that will actually have, given the stark divide in retirement preparations. On the one hand, we have a lot of people who have little retirement savings, who play a small role in the markets and will delay retirement (or just never do it). On the other, we have some people with well-planned retirement accounts. I would not be surprised if a fair number of the latter have planned to live only on the proceeds of their investments. That will introduce some bias towards dividends over reinvestment, I suppose. This is speculative, granted.