The Baby Bulge Begins by John Sweeney
ARTICLE SYNOPSIS ...The Baby Bulge Begins by John Sweeney
Our Technical Editor opines about the demographic effect the baby boomer generation is having on the stock market.
Is 38% of the value in the market unaccountable? What could explain such a discrepancy? Goldman,
Sachs & Co. limited partner Barrie Wigmore (The Wall Street Journal , June 5, 1991) picked apart the
market's advances in the 1980s but found that interest rates, higher earnings and ""overly optimistic
earnings estimates"" couldn't account for more than 62% of the gains in that decade. Wigmore and
economic luminary Robert Shiller (of Yale Unive...