Right now, index funds are buying about $800 billion worth of stock a year. This money comes from regular 401K deductions and other auto-pilot type savings. This has a tendency to prop up the stock market, since the people with these payroll deductions do not watch stock prices very carefully, and are saving for the long term.
Of course, it is true something bad will happen eventually....but no one can say when or how. It’s kind of like predicting the end of the world.
Once the boomers start spending their retirement money, things will get interesting.
I expect a call to “nationalize” the 401k.