28-11-2007 --- 21-12-2012
The countdown has begun...
After an extremely long upward trend,
the stock market will take a plunge between 2007- 2012 as the 'Baby Boomer'
generation prepares for retirement. The members of this group will begin moving
vast sums of money into more conservative investment vehicles such as money
market accounts and stable return funds. This market trend will result in the
devaluation of younger workers and pension fund investments. Accordingly,
younger workers will be forced to extend their working years because they won't
be able to afford retirement.
The financial media will report the measurable downward trend of the equity
market and an upward swing in other more conservative markets. Additionally, as
with each previous stage in the Boomers lives, the rest of society will be
inundated with a spate of media coverage about their impending retirements.
Current investment information given out by retirement plan sponsors suggests
that people should begin moving money out of equity markets and into more
conservative investments as they near retirement. Given the fact that the oldest
Boomers just turned 50 and are the last group of people who will be able to draw
Social Security at age 65, they will begin to protect their investments at about
age 60, or ten years from now. At age 65 the retirement phase will begin. Due to
the sheer number of members of this group and the amounts of money in the
retirement funds, this is bound to occur.
The good news is that many of the overbearing/self-important/materialistic
doorknobs will be out of the marketplace. We younger workers actually may be
able to achieve a modicum of career success as their jealously guarded positions
are vacated.