It's amazing to me how many smart people don't understand this. The prices would bounce back to almost exactly what they were before the withdrawal. Edit 1: Th

It's amazing to me how many smart people don't understand this. The prices would bounce back to almost exactly what they were before the withdrawal. Edit 1: This is because the stock market is mostly (quasi) efficient. Every other answer in this thread is wrong. Random people buying and selling have nothing to do with what the correct price of assets are. Edit 2: The question makes this answer particularly easy because pension investors are by definition buy and hold investors (not day traders). If 50% of day traders did this the answer would be more complex. However, on average the answer would still be the same. If it was fundamental investors, this would be a much more interesting question. However using induction previous fundamental investors would have never invested in the first place...And the end game here is risk must always carries a premium...which leads us back to...prices bouncing back yet again.