Monday, August 22, 2011

Baby boom means bust now

Boomers May Stall Stocks for Decades: Fed Paper

Aging baby boomers may hold down U.S. stock values for the next two decades as they sell their investments to finance retirement, according to a paper from theFederal Reserve Bank of San Francisco.
“U.S. equity values have been closely related to demographic trends in the past half century,” adviser Zheng Liu and researcher Mark Spiegel wrote in a paper released by the bank today. “In the context of the impending retirement of baby boomers over the next two decades, this correlation portends poorly for equity values.”
Comment: No more buying on dips now, game over, Roger. Even without a crash, stock will head South for at least two decades. Let's get ready to buy stocks for our grandsons in 2029 when we'll celebrate the 100th aniversary of the big crash. This time it probably will be the best investment opportuntiy that ever was. 

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