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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Mark Fowler who wrote (7301)	5/30/2001 12:00:31 PM
From: craig crawford	Read Replies (2) \| Respond to of 57684

>> craig i don't see that possibly happening until 2010-11 << You can start withdrawing at 59 1/2. That puts the start of the festivities at 2005. What happens if all the boomers wait until 2010 to take out their funds? You saw how fast stocks go up when too much money chases too little stocks. Everyone can't run for the exits all at once without a catastrophe. Some people will start heading for the exits a little earlier to beat the mad dash. The point is, starting in 2005 there is a steady dose of selling to be had for the following decade. That will cap stock prices and make them stagnant at best. Do you think foreigners will just sit there and prop stocks & bonds up so baby boomers can get a nice price for their retirement? Don't you think foreigners might be a little anxious knowing that their US stocks and bonds are going to see a steady flow of selling in the coming decade? You think they are just going to politely sit on their hands so you can sell at better prices? Just remember, we just had a mad dash last ditch effort by boomers to scrape up money for their retirement in the 90's and you saw the result. Unprecedented gains in stock prices. Now picture the corollary to that. People slowing the rates of investment into retirement funds, and actually beginning to withdraw funds as they hit 59 1/2. It doesn't take a genius to recognize that stocks are not going back to their hey days of yesteryear.