Something like 70-80%+ of US stock market ownership is institutional, which ultimately means overwhelmingly pension and insurance funds. I'd imagine much of the rest is individual investors' pension savings.
Bubbles can grow fine so long as no one wants their money back. But eventually they will, and then valuations will be real. When all these boomers draw their savings and buy themselves annuities, what's going to happen?
One pet theory of mine is that the US market goes up so much because of it's population growth. DM in Europe for example don't see this net inflow of people saving for retirement, instead the pressure is rather pensioners pulling money out.
Eventually though even the US stock market will have a reality check, and who knows what happens then.
This is a good point and perhaps is driving the point further. With demographic decline, there's less and less folk able to actually generate value for the pensioners, perhaps it's a sign go all in on AI. If it doesn't work out we were screwed regardless.
Bubbles can grow fine so long as no one wants their money back. But eventually they will, and then valuations will be real. When all these boomers draw their savings and buy themselves annuities, what's going to happen?
One pet theory of mine is that the US market goes up so much because of it's population growth. DM in Europe for example don't see this net inflow of people saving for retirement, instead the pressure is rather pensioners pulling money out.
Eventually though even the US stock market will have a reality check, and who knows what happens then.