Wednesday, 24 August 2011

Today's Recommended reading: Economic letter by Federal Reserve Bank of San Francisco

Today's Recommended reading will be an article from Federal Reserve Bank of San Francisco.

Historical data indicate a strong relationship between the age distribution of the U.S. population and stock market performance. A key demographic trend is the aging of the baby boom generation. As they reach retirement age, they are likely to shift from buying stocks to selling their equity holdings to finance retirement. Statistical models suggest that this shift could be a factor holding down equity valuations over the next two decades.

Here is the link
Boomer Retirement: Headwinds for U.S. Equity Markets?


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