One of the biggest threats looming over the U.S. stock market might be your grandma. As the S&P 500 index powered to a fourth straight record close on Wednesday, one longtime market economist has highlighted what he described as a “a sinister downside risk…lurking in the shadows.”
In a note to clients shared with MarketWatch on Wednesday, former Merrill Lynch economist David Rosenberg, who now runs his own firm, Rosenberg Research, warned that the share of U.S. stocks owned by people at or near retirement age has surged to a record 80%. This could create problems during the next selloff, as older Americans could trample over the market in their rush to the exits. “If a downturn does materialize, demographically induced selling is a force that could exacerbate the spiral powerfully, with the effects ricocheting into consumer spending,” Rosenberg said.
ROSENBERG RESEARCH
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In a note to clients shared with MarketWatch on Wednesday, former Merrill Lynch economist David Rosenberg, who now runs his own firm, Rosenberg Research, warned that the share of U.S. stocks owned by people at or near retirement age has surged to a record 80%. This could create problems during the next selloff, as older Americans could trample over the market in their rush to the exits. “If a downturn does materialize, demographically induced selling is a force that could exacerbate the spiral powerfully, with the effects ricocheting into consumer spending,” Rosenberg said.
ROSENBERG RESEARCH
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