I've seen this argument before: Boomers are going to start liquidating stocks in retirement.
However, if you look at the distribution of ownership of stocks/401ks/IRAs, I think you'll find that a few rich hold a LOT of stocks, enough to live off dividends without liquidating.
The broad masses have little or no stocks and will work longer and/or live off Social Security and home equity.
It's only those in between we need to worry about liquidating, those with a few hundred thousand dollars in 401(k)s.
Are there that many non-rich that hold enough stocks to impact the market when they sell? Sure doesn't look like it.
Now sure there are traditional defined-benefit pensions too, but public pensions are still growing and underfunded, and need to keep accumulating. Private pensions are relatively small and hold low stock allocations.
So where is this generational liquidation going to come from? I just don't see it.
1.29.2020
Subscribe to:
Post Comments (Atom)
-
Body Count goes to Vegas! Ernest Scherer III was a Vegas loser who fancied himself a professional poker player. Doesn't that photo t...
-
UPDATE: Edited to remove the guy's name. I hope nobody harasses him or his employer. He was good-natured and his sign was innocuous a...
Maybe teaching racial division and hatred wasn't such a good idea after all
Doctor cycling in California run down, stabbed by driver screaming about ‘white privilege’ : A doctor cycling along the Pacific Coast Highwa...
No comments:
Post a Comment