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Aside from the investing markets in general and to their technicals; including the political ramifications of inaction in some developed countries are the investment areas that will be affected by the age groups, and in particular, at least for this country and the developed countries is the boomer group. Part of the fuel for positive investment returns over the past 30 years (in the U.S.) was from the large middle class made up of boomers (our house, too). The investment table is already partially turned from the "in crowd" (investing monies) to the "out crowd" (drawdowns for retirement). This full event will continue to unwind; and especially for some who will or have found they may need more money in retirement than expected. This area and the ultimate affect upon investments for all is a known circumstance; and I am not obvisously making a new and grand discovery; but reiterating the thought. Yes, there will remain investment areas that will provide decent returns. However, I do believe this will require much more effort going forward. The younger investors too, will have to attempt to continously monitor what we (this house) older folks are doing with our lives and monies. I constantly query those in their 60's-80's as to what may cause or has caused the method or plan they had in place regarding their spending habits. While my sampling is only MI and no more than 30 folks; beginning in 2011, 10,000 boomers retire every day of the week for the next 19 years. Obviously, what these folks do with their retirement money will have an affect upon various sectors of the economy.
From Pew Research: " 10,000 - Baby Boomers Retire
As the year 2011 began on Jan. 1, the oldest members of the Baby Boom generation celebrated their 65th birthday. In fact, on that day, today, and for every day for the next 19 years, 10,000 baby boomers will reach age 65. The aging of this huge cohort of Americans (26% of the total U.S. population are Baby Boomers) will dramatically change the composition of the country. Currently, just 13% of Americans are ages 65 and older. By 2030, when all members of the Baby Boom generation have reached that age, fully 18% of the nation will be at least that age, according to Pew Research Center population projections."
The May 31 version of GMO's (G = Grantham) asset class forecasts, which are based on annualized, real (after inflation) 7-year returns, show EM stocks at 6.7%, international large at 6.1%, international small at 5.3%, and U.S. high quality at 4.8%. Maybe I've been too indoctrinated into the New Normal mentality, but those actually look pretty decent to me.
Comments
Aside from the investing markets in general and to their technicals; including the political ramifications of inaction in some developed countries are the investment areas that will be affected by the age groups, and in particular, at least for this country and the developed countries is the boomer group.
Part of the fuel for positive investment returns over the past 30 years (in the U.S.) was from the large middle class made up of boomers (our house, too). The investment table is already partially turned from the "in crowd" (investing monies) to the "out crowd" (drawdowns for retirement).
This full event will continue to unwind; and especially for some who will or have found they may need more money in retirement than expected.
This area and the ultimate affect upon investments for all is a known circumstance; and I am not obvisously making a new and grand discovery; but reiterating the thought.
Yes, there will remain investment areas that will provide decent returns. However, I do believe this will require much more effort going forward.
The younger investors too, will have to attempt to continously monitor what we (this house) older folks are doing with our lives and monies.
I constantly query those in their 60's-80's as to what may cause or has caused the method or plan they had in place regarding their spending habits. While my sampling is only MI and no more than 30 folks; beginning in 2011, 10,000 boomers retire every day of the week for the next 19 years. Obviously, what these folks do with their retirement money will have an affect upon various sectors of the economy.
From Pew Research: " 10,000 - Baby Boomers Retire
As the year 2011 began on Jan. 1, the oldest members of the Baby Boom generation celebrated their 65th birthday. In fact, on that day, today, and for every day for the next 19 years, 10,000 baby boomers will reach age 65. The aging of this huge cohort of Americans (26% of the total U.S. population are Baby Boomers) will dramatically change the composition of the country. Currently, just 13% of Americans are ages 65 and older. By 2030, when all members of the Baby Boom generation have reached that age, fully 18% of the nation will be at least that age, according to Pew Research Center population projections."
Take care,
Catch
The May 31 version of GMO's (G = Grantham) asset class forecasts, which are based on annualized, real (after inflation) 7-year returns, show EM stocks at 6.7%, international large at 6.1%, international small at 5.3%, and U.S. high quality at 4.8%. Maybe I've been too indoctrinated into the New Normal mentality, but those actually look pretty decent to me.
See http://www.gmo.com