For the past nine years, the Milken Institute has put on an annual conference in Los Angeles that gathers several thousand business leaders, economists, and other experts to discuss the outlook for global capital markets. On Apr. 26, the institute's founder, former junk bond king Michael Milken, debated Wharton finance professor Jeremy Siegel, a leading expert on stock markets and the author of "Stocks for the Long Run." The topic: Baby BoomBaby Bomb? The two men grappled with the impact boomers' impending retirement will have on stocks and bonds in the U.S. over the next few decades (see BW Online, 6/27/07, "Old. Smart. Productive."). BusinessWeek senior writer Aaron Bernstein listened in. Here are edited excerpts of what they had to say:
Jeremy Siegel:
My interest in population and stock prices was piqued 8 to 10 years ago. An expert named Harry Dent used to day that everything about stock movements can be explained by population. I thought that sounded crazy. But as I gave speeches around the country, that was the most asked question I got. What happens when boomers retire and sell their assets? Are there enough people to absorb all that wealth?
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Jeremy Siegel:
My interest in population and stock prices was piqued 8 to 10 years ago. An expert named Harry Dent used to day that everything about stock movements can be explained by population. I thought that sounded crazy. But as I gave speeches around the country, that was the most asked question I got. What happens when boomers retire and sell their assets? Are there enough people to absorb all that wealth?
Read the complete article
