Boomers are leaving the stock market. Here’s what comes next, says this strategist.

MarketWatch/Barbara Kollmeyer/4-28-2022

“’The Fed’s communicated policy trajectory was intended to weaken equities — equities and the dollar are the Fed’s main conduits to impact the economy and, in turn, inflation,’ said the economist, in a recent note. ‘An acceleration of current market weakness adds to our expected near-term downswing in spending and, more critically, threatens to embed a much weaker outlook for spending heading into next year.'”

USAGOLD note: This article supports the point made in our post yesterday on this same subject. Isn’t that what the Fed did in the 1930s and precisely for the same reason – raised rates to weaken equities? Boomers, this article reports, are moving to cash. As the stagflationary chickens come home to roost, the boomer generation, having lived through the 1970s, might recall that cash does not do particularly well as the cost of living skyrocketed. Certain alternative investments akin to cash did very well as pointed out at the link in this post note.