Why the Baby Boomers could make it difficult for equity investors
Experience from the U.S. has taught us that, as people age, they gradually switch from equities to income-generating investment vehicles (in the past, mostly bonds). Eventually, as they age further, they become net sellers of both equities and bonds. Given the substantial amount of capital controlled by baby boomers, that could put further pressure on equities (and, eventually, also on bonds) in the years to come.