It’s not just Phil Cannella saying this, we all know that Baby Boomers are retiring in droves—specifically, the leading edge of an estimated 78 million Boomers turned 65 late 2012. Couple that with a sputtering economic recovery and the news isn’t good for future generations. According to the San Francisco Federal Reserve Bank, an already lethargic economy may be further slowed as the market becomes glutted with stocks that Boomers are dumping in order to finance their retirements; this may also slow demand for US stocks in China and other emerging countries.
Phil Cannella: Based on the San Francisco FRB’s research:
- • By 2021, stock prices will drop nearly 13% below 2010 levels
- • In 2027, stock values will equal 2010 levels
- • In 2030, stock values will exceed 2010 levels by 20%
All told, not a pretty picture, to say the least.
FOR MORE INFORMATION FROM PHIL CANNELLA, TUNE IN TO THE CPR SHOW, EVERY SATURDAY 11AM.