Facts
- Boomers have been the largest spending generation in history.
- Boomers have pushed back retirement in record numbers
- We have already hit a tipping point in Social Security where it can not sustain it self without major increased taxes or decreased benefits.
- Pensions are at record levels of stock to bonds, adding enormous risk to the equity markets
- The average Boomers assets are over allocated in equities with little to no real estate or bonds
- Increased life expectancy not only increases the total number of years to plan for in retirement but also increased health care expenses
- This is the most overvalued stock market in history
- Behaviorally most investors will sell off equities during a crash
- In retirement consumption will decrease at least 30%
Theory
We are poised for a "Boomer Retirement" driven crash.
Entering retirement Boomers will begin to draw on pensions forcing the sale of equities pusing down values. At the same time these Boomers sell stocks from retirement accounts to pay for other retirement expenses, further pushing equity values down. In retirement Boomers consumption will go down more than 30% adding additional pressure pushing down equity values.
Ironically fear of not having enough money in retirement is causing Boomers to stay in there jobs and contributing to 401k's while keeping them off their pensions. This fear is actually the one reason we don't slip into recession. But if we were to enter into recession for other reasons things could be even worse when combined with "Boomer Retirement".
Right now the average age of a retiree is 65 and the average of Boomers is 65, interesting. Leaving the rest of us just 2 short years to invest in guns and ammo. Last recession many Boomer pushed back there retirement but this recession many will qualify for full Social Security benefits and they will likely retire weather they are prepared or not. In a finial F-you the Boomers will likely drive down values so low it will take an entire generation just to recover.
Actions
Boomers aging bodys can't be repaired, and they lack the ability to heal themselves, they will require the blood of the young and expensive medical treatments. I predict the biggest returns will be in what I call the "Silver Rush". The "Silver Rush" will be any business poised to explode the aging Boomer. Businesses like; health care, senior living and other age related business. The "Silver Rush" will likely be bigger than the gold rush, the tech bubble and the tulip mania combined.
- Boomers have been the largest spending generation in history.
- Boomers have pushed back retirement in record numbers
- We have already hit a tipping point in Social Security where it can not sustain it self without major increased taxes or decreased benefits.
- Pensions are at record levels of stock to bonds, adding enormous risk to the equity markets
- The average Boomers assets are over allocated in equities with little to no real estate or bonds
- Increased life expectancy not only increases the total number of years to plan for in retirement but also increased health care expenses
- This is the most overvalued stock market in history
- Behaviorally most investors will sell off equities during a crash
- In retirement consumption will decrease at least 30%
Theory
We are poised for a "Boomer Retirement" driven crash.
Entering retirement Boomers will begin to draw on pensions forcing the sale of equities pusing down values. At the same time these Boomers sell stocks from retirement accounts to pay for other retirement expenses, further pushing equity values down. In retirement Boomers consumption will go down more than 30% adding additional pressure pushing down equity values.
Ironically fear of not having enough money in retirement is causing Boomers to stay in there jobs and contributing to 401k's while keeping them off their pensions. This fear is actually the one reason we don't slip into recession. But if we were to enter into recession for other reasons things could be even worse when combined with "Boomer Retirement".
Right now the average age of a retiree is 65 and the average of Boomers is 65, interesting. Leaving the rest of us just 2 short years to invest in guns and ammo. Last recession many Boomer pushed back there retirement but this recession many will qualify for full Social Security benefits and they will likely retire weather they are prepared or not. In a finial F-you the Boomers will likely drive down values so low it will take an entire generation just to recover.
Actions
Boomers aging bodys can't be repaired, and they lack the ability to heal themselves, they will require the blood of the young and expensive medical treatments. I predict the biggest returns will be in what I call the "Silver Rush". The "Silver Rush" will be any business poised to explode the aging Boomer. Businesses like; health care, senior living and other age related business. The "Silver Rush" will likely be bigger than the gold rush, the tech bubble and the tulip mania combined.
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