Wouldn't it make sense to be Bullish Bonds?

[Scanner]

Hear me out - I know interest rates are low and when they rise, the bond market has to have losses.

But as Boomers now enter retirement this year, isn't the demand for bonds going to go up? And assuming the supply of new debt stays the same, wouldn't bond values be worth more?

Are we going from a country of stock holders to a country of bond holders?

[disneysteve]

Are we going from a country of stock holders to a country of bond holders?

I don't think so. There were broad predictions in recent years that the stock market would all but collapse as baby boomers started retiring and liquidating their stocks to live on. In reality, that just didn't happen. The whole generation hasn't retired at once and those who have retired haven't suddenly sold off all of their stock holdings. They may be liquidating little by little but many are just living off of the dividends and may even be net buyers due to dividend reinvestment. There hasn't been a wild rush into bonds. And even as older folks buy bonds, there are plenty of younger people still investing in stocks. Retirees know that if they leave the workforce at 62, they may have 20-30 years to live and they need stocks to do so.

[bjl584]

Probably not. The bond market is a good play as long as interest rates are low and as long as the volitility continues in the stock market. I think that the retirement "boom" that you are referencing will have minimal impact from an investment standpoint. It probably will be more of a steady flow of retirees than one big tidal wave. And even if it was, the markets have most likely already priced that in.