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Federal Reserve Is Predicting 50% Decline in Stock Prices over Next 10 Years as Baby Boomers Retire

 

Steamboat Springs, CO -- (SBWIRE) -- 01/16/2015 -- A December 22, 2014 Federal Reserve Bank of San Francisco report has startling news for investors.

The report is predicting, due to the relationship between aging baby boomers and overall market price/earnings ratios, stock prices could be cut in half by 2025.

The report details the close historical relationship between investor demographics and stock prices.  The report shows how there are prime stock-buying years (ages 40-49) and stock-selling years (ages 60-69).  As the Baby Boomers enter their prime stock selling years, equity prices will experience significant downward pressure.

The mathematical model used shows that the current Standard & Poor 500 Index price earnings ratio would drop from its current value of 17 to 8.2.  This would mean a 50% decline in overall stock values.

The report updates a 2011 report that predicted a similar downward trend, but the latest data show the decline will be even more severe.

Investors might do well to look for alternative investments in the coming years.

For more information please visit: https://thefranklinsociety.com/federal-reserve-aging-baby-boomers-will-crush-stock-prices-by-50/

Contact:
Kriss Berg
The Franklin Society
'The Alternative Investing Club'
Kriss@thefranklinsociety.com
1815 Central Park Dr., #358
Steamboat Springs, CO  80477
970-372-4634