Stock Market Wealth

This Can Absolutely Destroy Asset Prices

by | Stock Market Wealth

Stock Market Wealth

This Can Absolutely Destroy Asset Prices

Jul 29, 2016 | Stock Market Wealth

Age WaveWhen a hurricane hits, the destruction is immense. Everything in sight is damaged beyond repair, but if you can escape the area and avoid clashing with this massive force, there’s nothing for you to worry about.

Today, unlike a person that can avoid the hurricane, the global economy is facing an unavoidable clash with a swirling storm that can wreak havoc on us all. The “Age Wave” is upon us. Economists and investors have been profiting from this trend for decades. Before becoming a hurricane that is set to depress asset prices for years to come, the “Age Wave” was a cruise ship sailing to paradise, and anyone on board profited from it. The “Age Wave” is the Baby Boom generation, which changed the landscape of the United States and brought prosperity to those who catered to their wants and needs.

The Baby Boom is a worldwide phenomenon that occurred right after the second World War when the fertility rate jumped, and between 1946-1964, there was an extraordinary amount of new babies. This generation was like a basketball trying to pass through a garden hose, and as they progressed within the hose, they expanded it, and then shrunk it back once the basketball continued.

Baby Boomer Illustration

In the ‘50s, they caused baby formula and diaper sales to explode, making Gerber an empire on the way. Then it was toys, as they became little children. As teens, they helped the rise of McDonald’s, KFC, and all who facilitated to their needs. As young adults, they drove up the value of the auto manufacturers. And hitting their peak earning years, they began buying first-time homes and move-up homes, thus creating a real estate frenzy.

Now, every 10 seconds, a boomer celebrates their 65th birthday and begins their retirement. This generation is said to own close to 50% of the stock, bonds, and real estate in the world.

In total, there are close to 80,000,000 boomers in the U.S. alone. In the ‘90s, they were addicted to technology, fueling the dotcom bubble, and since the 2000s, their main focus is their health, sparking a global health trend. One company is positioned to profit from the health trend more than any other, and you can access our research on it in an issue titled Make a Fortune from Cradle Till Grave.

Even though the boomers helped to create countless millionaires and billionaires throughout the last decades by spending an incredible amount of money and borrowing to spend more on assets and goods. It is them who pose the greatest threat to our livelihood going forward.

The Federal Government has promised them Social Security benefits and Medicare and Medicaid assistance, and now it is time to start paying, but the funds are not there. Put together, these are the largest unfunded liabilities in the world’s history, and they cannot be financed by tax receipts from the next generations, because they are smaller in size.

Economists and politicians are clueless about how to confront this massive problem. As investors, we must be seriously prepared for what’s coming. In the last 6 months, the team and I have been researching the most intelligent way to invest in a future where the U.S. would have to either: Raise taxes, delay the retirement age, or print an insane amount of new currency.

Annual US Mandatory Spending % of GDP

In each of these scenarios, a major reduction in our standard of living is guaranteed. Many boomers feel safe, since they have assets. Their plan is to liquidate those homes, stocks and bonds to the market – the problem is there is an incredible shortage of buyers.

The demographic problem of the “Age Wave” will be the greatest problem facing the western world since the industrial revolution enriched it.

The key action steps to take in order to thrive through this epic time are:

  1. Be debt-free.
  2. Don’t dry up your active income sources until you figure out how to replace them with alternative sources of active income that are more suitable from the retirement age. Start researching how you can earn steady income on a part-time basis doing things you love to do and are good at. Another good idea is to start mastering income sources that are home-based.
  3.  Don’t suffer from Activity Disease.
  4. Build your Financial Fortress of assets that cash-flow every month.
  5. Capitalize on the mind-boggling force of Steroid Stocks; these are time-sensitive speculations that have a 100%-1,000% profit potential in short periods of time. Even one Smart move can fund 3-5 years of comfortable living.
  6. Research amazing opportunities to retire outside the U.S. in what I call “Cheap Paradise” (more on those in future articles).

The “Age Wave” is upon us. You have been warned. Do not become indifferent to it. Adapt to it and prosper.

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