**Money will be leaving the market**
1) Vanguard says that 91.3% of equity is held by people over the age of 46 (http://ift.tt/2tvexrw). This group is retiring and will continue to take funds out over time to cover expenses.
2) (I believe) Yellen raising rates will allow baby boomers to take more and more assets out of the stock market, and put them into bank accounts/bonds instead.
**This money will not be replaced by the younger generation**
1) Student loan debt for the class of 2016 was an average of $37,172 (http://ift.tt/2cFMwEm).
2) Yes, median household income has increased since 1985 by around 6k (http://ift.tt/2sVY8z4) BUT
3) Housing in the United States relative to real wages has TRIPLED since 1980 (http://ift.tt/2bfzjqI).
4) The number of jobs available will inevitably decrease as automation takes over. Driverless cars on their own will take a huge number of jobs, 4.1 million according to Marketwatch (http://ift.tt/2crrSNX).
TLDR: Money will continue to leave the market due to retirement spending and interest rate increase, but will not be replaced by the younger generation as student loans and housing increase at such alarming rates.
I left out A TON of detail obviously in order to keep this fairly readable, but am I missing anything major/have any large misconceptions?
Submitted June 21, 2017 at 08:41PM by NewAccountingKid http://ift.tt/2sVMeFp
