Delete comment from: Captain Capitalism
Captain - I think your analysis is correct, but the issue is when will this start hurting the market, to what degree and how quick any such correction will be.
I'm suggesting that this will be a gradual correction, since not all boomers retire at the same time and that their shifts from equities to bonds are gradual as they age.
Let me also suggest while the US and many developed nations have boomers working through their systems, that's not necessarily true in the rapidly growning low cost countries such as India, the former Soviet Union, Vietnam, China, countries. As the citizens' wealth rapidly increases, they too will seek investment opportunities (if allowed).
Keep in mind too that many of the independently wealthy often remain full invested in equities - largely because they look at wealth beyond their generation.
As for contributing to those 401Ks, what better options are there?
Apr 6, 2009, 1:36:00 AM
Posted to Monthly Flows Into Equity Mutual Funds