There is a segment of the Baby Boomers that will never return to investing in equities because the last 12 years has produced a lack of returns with relentless volatility and scary headline news. BofAML's Mary Ann Bartels notes that equity holdings as a percentage of financial assets peaked in 2000 and have been declining ever since. This same behavior occurred last time the market traded sideways from 1966-1984 (16 years) and we clearly face the risk of more years of sideways trading to come as cumulative bond and equity flows show no sign of letting up at all.
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Charts: BofAML