--- Rob Schaap <rws at comedu.canberra.edu.au> wrote:
> He reckons shares are the last
> place to put your pension money - that when the
> bubble goes we're in for a
> decade of depression; and that we're in the worst
> bubble ever (lotsa stuff
> on the charts of the 1901, 1929 and 1966 'booms' and
> ensuing droops), with a
> DJI up 200% in five years as opposed to real
> personal income and GDP
> increases of 15% and a corporate profit increase of
> thirty.
>
> Strikes me as just the sort of thing that'd make
> baby-boomer punters
> nervous. A lot of them won't have the time to ride
> this droopy decade,
> after all. If they did pull out (and they're a
> mightily significant
> demographic for the next fifteen years), that'd make
> a big difference. The
> question which occurs is, if these people were to
> take their dough out of
> the share markets, is there anywhere for 'em to put
> it?
I am operating under the assumption that the baby boomers really don't have a significant position in the equity markets. By significant I mean as a percentage of the overall capitalization (as opposed to personally significant). Am I wrong?
It seems more likely to me that Boomers are a significant part of several institutional investors like pension funds. One would think that these funds have balanced their portfolios against the demographic bubble and would be able to ride out a 5-6 year crapout in the equity market. I wouldn't bet MY retirement on it though...
Adam
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