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<p>[QUOTE=&quot;Rono, post: 1648276, member: 6492&quot;]Howdy,</p><p><br /></p><p>The baby boom generation is about 70M in this country and extends to europe and asia ex-japan.&nbsp; If you think about WWII, the winners went home and made babies.&nbsp; &nbsp;&nbsp; This is a bloody huge demographic bulge working thru the system and a lot of money has, and can still be made, playing it.&nbsp; &nbsp; For example, take real estate.&nbsp; What type of housing do people buy throughout their lives and when?&nbsp; Apartment, starter, bighouse, retirement home, retirement village, senior housing, old folks, memory ward, grave.&nbsp; What are the boomers doing right now?&nbsp; The boomers are 1946 - 1964 - or 49 to 67 yo.&nbsp;&nbsp; This means the younger are either living in or moving to the &#039;big house&#039; while the older are moving to the retirement home/condo on the lake or links.&nbsp; In a few years the older will start to move to retirement housing.&nbsp; To make a buck on this you need to stay ahead of the curve.&nbsp; </p><p><br /></p><p>Now as for the markets, most of them are international but for simplification lets separate pms and stocks.&nbsp; The demand function for pm&#039;s is both global and enormously diverse.&nbsp; A demographic bulge here or there doesn&#039;t really matter because of the breadth of the demand.&nbsp; Now the equity market is also subject to global demand but to a much lesser degree (i.e. big banks and the very rich and some sovereign nations).&nbsp; The other problem facing the equity market is that so many of the boomers have (or had) stocks via their 401s, retirement savings, etc.&nbsp; &nbsp; To some degree the baby boomers will change from being&nbsp; net investors to net spenders.&nbsp; Ah, there&#039;s the rub, &#039;to some degree&#039;.&nbsp; Oh, BTW, this has been chatted about for quite a while as the baby boomer generation went over &#039;the line&#039; back in 2009/10.&nbsp; By the line, I mean that point where they would be on average more retired than working.&nbsp; This transalates into the 70M boomers already and in increasing numbers becoming net/net DISinvestors.&nbsp; Ah, this is not good for the equity market.&nbsp; Not good at all.</p><p><br /></p><p>The only thing keeping the stock market gassed is the Federal Reserve printing money like a drunken sailor.&nbsp; They&#039;re calling it Quantitative Easing but it&#039;s essentially monetizing the debt.&nbsp; They&#039;re doing this because the Unfunded Liabilities i.e. the real national debt) is over $100 Trillion freakin dollars and they have no way to pay it.&nbsp; UL are social security, medicare/aid, various trust funds, debt service, war w/o taxes, not to mention the state and local stuff).&nbsp; There is no politically viable way to reduce these debts sufficiently, nor raise taxes sufficiently nor any combination of the two.&nbsp; Ergo, the Fed is left with no alternative but to monetize as much as possible in order to hopefully cut and tax to cover the rest.&nbsp; &nbsp; At least that&#039;s the plan. The issue is whether they can do this without imploding the currency into some hyperinflation nightmare . . . or any other sort of financial meltdown you can envision.&nbsp; And that is the bet we&#039;re all being forced to make as be try an plan for our own financial futures.&nbsp; Is this a great country or what?</p><p><br /></p><p><a href="http://www.zerohedge.com/news/2013-02-22/late-friday-humor-quantitative-easing-simplified" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.zerohedge.com/news/2013-02-22/late-friday-humor-quantitative-easing-simplified" rel="nofollow">http://www.zerohedge.com/news/2013-02-22/late-friday-humor-quantitative-easing-simplified</a>&nbsp; &nbsp; </p><p><br /></p><p>Now to bring this back to the thread, the stock market should be tanking and should do so for another lost decade.&nbsp; It&#039;s not because the Fed is pumping trillions of dollars and at zero interest rates, the stock market is about the only possible place to invest.&nbsp; The market is being kept afoat by QE . . . nth.&nbsp; It&#039;s like a tire with a leak.&nbsp; You can keep it inflated if you continually pump a lot of air into it but should you stop . . .&nbsp; </p><p><br /></p><p>How long can the Fed keep filling the punchbowl and what happens when they stop?&nbsp; </p><p><br /></p><p>just a few thoughts,</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

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