Posted 1/24/2024, 5:28:00 PM
Stocks Heavy in Retiring Boomers' Portfolios Raise Risk of Mass Sell-Offs in Downturns
- Americans over 55 own 80% of US stocks, creating big "downside risk" if market downturns
- Boomers have been steadily increasing their stock ownership since the 1990s
- Retirees can't afford to hold stocks through recessions, would sell off, exacerbating downturns
- Mass retirement selling would hurt consumer spending and industries like travel and leisure
- While bond allocations have stayed stable, boomers have added more and more stocks over time