There's your answer: "...or the potentially larger and more promising market of buyers from overseas."
Pete, WA2CWA > ---------- Original Message ----------- > From: "Merz Donald S" <[EMAIL PROTECTED]> > To: "'Amradio (E-mail)" <[email protected]>, "'Glowbugs > (E-mail)" > <[EMAIL PROTECTED]> > Sent: Mon, 12 Apr 2004 17:30:06 -0400 > Subject: [AMRadio] BAs and Baby Boomers > > > Q: What do baby boomers have to do with boatanchors? > > A: Anything, and -- not to put too fine a point on it, everything. > > > > > Let me explain. > > > > A baby boomer is a person born between the years of 1946 and 1964. > > > Every country on Earth has a significant baby boomer generation. > In > > the USA, the baby boom generation is over 26% of the population. > The > > current aggregate income of USA baby boomers is $4.1 trillion. > They > > (we) use this income to account for 40% of total demand and almost > > > 50% of all discretionary spending. Boomers hold 80% of the cash > and > > 79% of all the assets that exist--including --ta-da-- > boatanchors. > > > > So what? Well, 46 + 65 = 2011. The boomers are retiring soon. > > Actually, due to early retirements and other factors, significant > > > increases in retirements will begin between 2006 and 2008. By > 2011, > > retirement-mania will be in full swing. Sometime shortly > thereafter, > > "the largest wealth transfer in history" begins to take place. A > > > minimum of $41 TRILLION will begin transferring "from parents to > > children and from philanthropists to charities." > > > > Economists only have this figured out in the broadest terms. But > > sometime between 2011 and 2021, the baby boomers will become what > is > > called "net sellers of investments". That means that you and I > will > unload more boatanchors than we buy. Economists disagree about what > > > this means for the financial markets. The gloomy ones say that > this > > will usher in a "structural bear market that could last throughout > > > much of the second quarter of the 21st Century." But let's deal > with > > boatanchors here. > > > > I changed the wording in the paragraph below to say "boatanchors" > > > everywhere it used to say "financial holdings". But this is from > an > > insurance industry report: > > > > "At first, the older Boomers will begin selling some of their BAs, > > > but the sales will be absorbed rather easily by the larger number > of > > younger Boomers who are still eagerly buying. Eventually, though, > > even the middle and younger-aged Boomers will want to liquidate > > some of their boatanchors. Who can they sell to? The only options > > > seem to be the much smaller and more financially pressed > "Generation > > X" that grew up in the shadow of the boom, or the potentially > larger > > and more promising market of buyers from overseas." > > > > This is why you and me have anything and everything to do with > > boatanchors. We own practically all of them. And we all need to > get > > rid of them over the next 15 to 25 years. Worse, the only market > we > > have for them is "much smaller and financially pressed". > > > > A word to the wise should be sufficient. Keep your collection in > > touch with the demographics and the concepts of supply and demand. > > > BAs are fun. But they are not good long term investments. It's > just > > that simple. > > > > Since no one is going to want them, I am planning to be buried > with > > mine--like the ancient Egyptian mummies with their cats. > > > > 73, Don Merz, N3RHT > > > > Quotes are from various insurance industry reports on the web and > > > the World Future Society. > > > > The information contained in this e-mail may be confidential and > is > > intended solely for the use of the named addressee. Access, > copying > > or re-use of the e-mail or any information contained therein by > any > > other person is not authorized. If you are not the intended > > recipient please notify us immediately by returning the e-mail to > > > the originator.(A) ________________________________________________________________ The best thing to hit the Internet in years - Juno SpeedBand! Surf the Web up to FIVE TIMES FASTER! Only $14.95/ month - visit www.juno.com to sign up today!
