Demographics And The Stock Market

It is not a surprise that the world's 7 billionth person was born outside the United States.

That's because the declining birth rate in the U.S., and the consequent aging of the country's population, is hardly a secret.

How much should investors worry that the Baby Boomers' retirement will lead to an abnormal amount of selling pressure on the U.S. stock market? Monday's momentous birth provides an ideal occasion to revisit this important question.

Being a contrarian, I must confess to a long-standing skepticism of the assumption that the Baby Boomers' retirement will be awful for the stock market. And, after talking Monday afternoon to Jim Poterba, I became even more skeptical.

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