Once the Baby Boomers start to retire, will they withdraw more money from the stock market than is able to be put in by Gen X? And if not, won't that result in a crash of the stock market and massive losses of savings for the Baby Boomers?
2006-07-12 13:53:51 · 4 answers · asked by professional student 4 in Business & Finance ➔ Investing
Brilliant question. You could say I'm betting my future on "yes" but I'm worried that no generation will ever save like our grandparents' generation, until there's another "Great Depression" to encourage it. The market is still down 16% from record high in 2000, and we are nowhere near heading back to it. Some people say market does better on a Democrat president, but it might be interesting to see why that is. Clinton certainly wasn't a great president, so it may be that more scams take place under Democrats. But social security is a ponzi scheme, that will only work if we allow massive immigration, which is occurring. But will we recognize our country when it's over? We might wind up prosperous but speaking spanish, chinese or swahili. Teach your children practical skills like plumbing and electrical, and that might be the best investment you make.
2006-07-12 16:12:46 · answer #1 · answered by pass_the_soma 1 · 1⤊ 1⤋
Great question. Gen X likes money too, and they'll pour it into stocks just like aaalllllll the generations before them.
Generations upon generations have been removing money from the market, and putting it back in. Remember that the the baby boomers will die and leave their money to their Gen X kids, and the Gen X kids will invest, too.
This has always been going on. We've just got new names for our gens right now.
The media loves to stir up fear and panic with sensational stories....it sells copy. I know this advisor that *always* pumps the fear and gloom-around-the-corner, and sometimes (every 10 years or so) he's right, just like a stopped clock is right once or twice everty day. He makes good money at it, too.
2006-07-12 21:03:10 · answer #2 · answered by gene_frequency 7 · 0⤊ 0⤋
i think they will.......afterall, the gen x'ers won't have the social security safety net to fall back on when they get older. therefore, they'll need to invest in company 401k's or start an IRA........typically alot of younger investors pool their cash in the market.
2006-07-12 20:59:46 · answer #3 · answered by zoo2626 4 · 0⤊ 0⤋
By that time the baby boomlet will be investing.
2006-07-12 21:40:11 · answer #4 · answered by Ranto 7 · 0⤊ 0⤋