- The first baby boomers retired in 2012, but there hasn’t been a significant impact on markets yet.
- However, in the next two decades the trend isn’t that positive and a Federal Bank of San Francisco model shows the S&P 500 will be at 900 points in 2025.
- Many factors might mitigate boomers retiring risks, including the timing of their retirement and cashing out, foreign investments, and immigration.
In the 2000s, a strong bearish argument against stocks was that from 2012 onward, baby boomers will start retiring, increasing fund retrievals and pushing stocks down. The argument has faded in the last few years as the current bull market is beating all expectations, but it’s still a good idea to see how baby boomers retiring might influence future market trends. More →