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Home Videos Financial
Retirement

Fed Bubble Ignites “Great Retirement” Wave as Baby Boomers Party Like It 1999

by Tyler Durden, Zero Hedge
March 5, 2024

(Zero Hedge)—As the Magnificent 7 tech stocks and home prices grind higher, there has been a massive surge in the number of Americans taking early retirement. Bloomberg has coined this phenomenon the “Great Retirement Boom.”

A model designed by economist Miguel Faria-e-Castro at the Federal Reserve Bank of St. Louis shows the US has around 2.7 million more retirees than initially forecasted. 

Source: Bloomberg

Notice that the number of retirees in the US has surged beyond expectations.

Source: Bloomberg

This trend emerges as retirement savers pile into tech stocks (we’ve asked: Is this a good idea?).

A recent Bloomberg Markets Live Pulse survey showed about half of the retirement savers were buying stocks as a direct response to soaring prices – far surpassing the 6% who said they had added the traditional inflation hedges.

The latest expectations for interest-rate cuts from the Fed this year have fueled the artificial intelligence bubble – with signs of Dot Com lurking in markets.

Or 1930s…

Maybe it’s different this time. 

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According to Bloomberg, soaring stocks are already “convincing those already retired they needn’t return to the workforce.” 

Unless the Fed is committed to a never-ending program of zero interest rates and quantitative easing… Then, retirement savers have nothing to worry about. However, when the financial elites prick the bubbles through a prolonged tightening cycle, we’ll see some those retirees return to the workforce as Walmart greeters.

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