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Outside the Box: Why baby boomer retirements won’t destroy the stock market

A number of people have asked for my thoughts on this blog post from Lightfield Capital about the potential for baby boomers to take down the stock market in the coming years from forced sales during retirement.

Here’s the gist of the argument from this well-reasoned post: a combination of rebalancing from stocks to bonds as people retire or approach retirement age and required minimum distributions from tax-deferred retirement accounts at age 70.5 will cause baby boomers to be huge sellers of stocks in the coming years, which bodes ill for stock-market returns.

This very well could be true. But allow me to take the other side and offer some possible reasons why the boomers won’t destroy the stock market in the coming years as they retire en masse.

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