A new article out today from Motley Fool discusses How Baby Boomers Affect Your Stocks. This is just the most recent of a series of articles concerning the aging of the boomers and their impact on equities. Below are some other articles of interest on the subject:
- How will Baby Boomers’ retirement affect stocks? From USA Today June, 2010 A good decade in the market often follows a bad one. But the big question: If Boomers follow the usual pattern of shifting their portfolio mix toward income-generating investments — bank CDs, bonds and dividend-paying stocks — will the stock market’s long dry spell drag on?
- The Effect of Baby Boomer Retirements on the Stock Market from fivecentnickle.com In many cases, boomers already hold a well-diversified portfolio, so there won’t be a precipitous change. In addition, those with the largest portfolios are more likely to be concerned with passing their wealth to the next generation (estate tax be damned!) than they are with preserving principal in the short-term.
- Baby boomers’ effect on equity prices: a tsunami or a tempest in a tea pot? from Entrepreneur The effects of demographics on markets and the economy have interested researchers for some time. A specific group, the so-called baby boomers, has been receiving special attention because it contains significantly more people than the preceding generation, and many more when compared to generations that follow it.
- Four ways to play the baby-boom effect from CNNMoney Whatever the macroeconomic impact of our aging population, baby-boomers will continue to have a big influence on a wide array of industries. Health care is the most obvious, given the increasing medical needs that come with age, but travel, financial services, and technology will also be affected. Picking stocks based on that notion is a tricky proposition – demographic forecasts might already be priced in, or the effects on a particular company might be murky. The key, investing pros say, is to zero in on solid stocks with good fundamentals that should benefit from larger trends.
- How Boomers Will Impact the Health Care Industry from CNBC As the first wave of Baby Boomers reaches retirement age, predictions for the nation’s health care system have been nothing short of apocalyptic. Many predict the surge in demand for medical care associated with the aging population will so strain our resources that future generations will face permanently higher inflation, higher taxes – or both.