INTERMEDIATE TRAINING
Fit Tip # 3:  Demographics

Now for some meatier stuff. The chart below shows the three peaks in the birthrates that happened after the Second World War. The people born then are called the Baby Boomers. Baby Boomers  today are reaching retirement age - We are 45 to 60 years old.

The second chart shows how this age group - those 45 to 60 are in the peak earning and spending years.

The people in this group understand the need to quickly save money for their retirement.

The average Canadian who is 60 years old today will still be alive 25 years from now.

Most Canadians have difficulty meeting their obligations on their working income, and face the prospect living in retirement with much less. My experience has shown that the people in this group, Baby Boomers, are very highly motivated to put money aside for retirement. These motivated savers will drive the market for many years, creating tremendous opportunity.

The stock market and the population curves of peak spenders can be overlaid, and create a very interesting fit. As can be seen from the chart below, if birth rates are advanced 49 years into the future, the birth rate curve and the Standard and Poors index make a good fit. In fact, the fit is almost uncanny. This chart shows past history. This has already happened. If we take the birth rates of the Baby Boomer who are just now coming into their peak spending year, and project these rates into the future, the potential stock market growth is stunning! This demonstrates FIT Tip #3, DEMOGRAPHICS and it teaches that the best approach is to STAY IN THE MARKET! Many commentators and authors are just now beginning to see this trend, a trend which can have enormous impact on your investments.

This chart shows how the Baby Boomer wave is going to impact the Stock Market. The three peaks we looked at earlier are going to carry the market forward for many years. The combination of people approaching retirement with inadequate savings and the fact that these same people are at their peak earning years is a powerful driver for the market.

This is the most highly motivated group in history, with the greatest amount of disposable income, plus the inheritances from their parents. Baby Boomers and their need to save for retirement will create the greatest Bull market in history!

Are you going to be part of that market?

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