Will The Markets Tank As Boomers Retire?

'The CBO report provides some ideas, but has a long way to go before resolving the question' of whether demand for and prices of assets will fall as boomers retire, said Alan Gustman, a professor at Dartmouth University, and Thomas Steinmeier, a professor at Texas Tech University.

Written by: Jessica Behnham

BOSTON -- Many wise men have predicted the stock and bond markets will go into a free fall for decades once baby boomers start withdrawing money from their retirement accounts, but a new report this week by the Congressional Budget Office suggests that won't happen when boomers retire.

 

"Some economists have warned of the possibility of a dramatic decline in demand as baby boomers sell off their assets to finance their retirement; they assert that the sell-off could cause a dramatic decline in prices," Douglas Elmendorf, director of the CBO, wrote in his report.

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