Vanguard has issued a report debunking notions that retiring baby boomers will hurt equity markets.
In "Baby Boomers and Equity Returns: Will a Boom in Retirees Lead to a Bust in Equity Returns," the report's authors contradict conventional thinking on the topic, saying that ownership of U.S. equities isn't restricted to U.S. investors of a certain age. It is a global marketplace, they say, so assertions that the market revolves around one specific generation of people is short-sighted.
A 2006 analysis of the Standard & Poor's 500 Index's returns from 1948 through 2004 supports Vanguard's position, pointing out that demographic variables generally accounted for less than 6 percent of stock market return variability — far less than macroeconomic, financial or other unexplained variables.
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