From Time:

1. Americans 55 and older have a large and growing share of stock ownership, up to 80% from 60% two decades ago according to Federal Reserve data. Economist David Rosenberg warns that their inability to weather a downturn could pose a threat to the market.

2. The S&P 500 is up 22%, but the increasing equity share of older Americans is a potential stumbling block. If the market takes a dip, retirees might sell their equities, exacerbating the situation.

3. This behavior could be a force that worsens a sell-off, as older Americans are more likely to sell stocks or exit the market entirely if their portfolios start to take a hit because they’ll want to make sure they have enough money in retirement.

4. As older Americans’ ownership share has risen, there’s been a decline in the share of equities ownership by people ages 40 to 54, now at about 15% currently, down from 20% a decade ago and roughly 30% in 1990.

5. Individual investors aren’t the only holders of stocks; institutional investors own a majority of public companies’ equities. While retirees have strong influence in the stock market, they’re also not the only big players.



Read more: Older American Investors Now Own 80% of the Stock Market