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> If 70 to 85 % of the stock owners in the country NEVER SELL, because
> they are holding for the long term, according to how they have been
> trained, isn't this shrinking the pool of assets
> available for purchase thus driving prices up?
Yup, that plays into the demographics model and is why I give the bull a
few more years. Most people have their stocks in retirement accounts and
they have been conditioned to just buy more on dips.
The whole thing could get ugly though as the boomers approach retirement
age. We saw what happened the first two days this year when a lot of
people, for tax reasons, put off taking profits in their taxable
accounts until after the year end. Imagine the whole boomer generation
dumping the stocks in their tax-free accounts with no worries about
paying taxes on the profits. The smart ones would get out quick and the
others would hang in there and get whacked hard. The whole psychology of
the market could change from buy the dips to sell the rallies as the
retiring boomers start to consider security more important than growth.
--
Dennis
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