omed, merely because over the coming years, a growing wave of retirees will sell assets to pay for their retirements?
In a note called Respect Your Elders, Bo fA economist Neil Dutta takes a look at this "Asset Market Meltdown Hypothesis" and notes that while it's intellectually appealing, the concerns are probably overblown.
First, he notes the simple economic equation behind the meltdown theory: P*K = Ny*S
On the left side you have the asset market P*K where P = the price of assets and K = The supply of assets.
On the right side you have the investor/saving side, where Ny = the number of savers and S = the savings rate.
Join us on our
Share this page with your friends
on your favorite social network: