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As a financial planner, I'm finding that boomers who are retiring realize
that they will be looking to have their money last them 20 to 30 years or
longer. They are smart enough they realize that they cannot have a sizeable
asset allocation in bonds due to the effects inflation. Of course the
strong bull market has tilted their perspective to a strong focus on
equities. Many are faced with the concern of living at the same level of
spending as before retirement (same standard of living) and not running out
of money. With that said, I suspect we will see many in growth to
aggressive growth portfolios. The big question is what will they do during
a bear market? Will they panic out of equities and run to money market
funds?
Marlowe
----- Original Message -----
From: JW <JW@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, January 11, 2000 2:21 AM
Subject: RE: [RT] Re: Shift to Futures? 1974-2000 Cumvolume line
> Sigh... EVERYONE seems to be keying on having another 2-5 years of gains
> based on the baby boomer phenomena. Which means this idea is likely
wrong.
>
> Should we take a big and extended (2 weeks <g>) dip, then you might see a
> large increase in the number of mutual fund redemptions with the money
going
> to bonds earlier than predicted. If the dip extends into months, then the
> US stock market driven economy might come to a halt as dot.com's go out of
> business, along with the others that service and live off of the "new"
> internet economy. Many people will be out of work. Those with remaining
> assets will cash them in and again, switch to bonds or CD's. This will be
> the signal that the ultimate deflation is starting to occur. But nothing
> much will happen on a permanent basis until people start losing their jobs
> (and stock options <g>).
>
> JW
>
>
> -----Original Message-----
> From: listmanager@xxxxxxxxxxxxxxx [mailto:listmanager@xxxxxxxxxxxxxxx]On
> Behalf Of Gwenael Gautier
> Sent: Monday, January 10, 2000 5:40 AM
> To: realtraders@xxxxxxxxxxxxxxx
> Cc: realtraders@xxxxxxxxxxxxxxx
> Subject: [RT] Re: Shift to Futures? 1974-2000 Cumvolume line
>
>
> Babyboomers range from the 50s to 64. that means the eldest are now in
> their fifties. Within a few years some will start moving risk assets
> (equities) into safe assets (bonds) as growtrh will become less
> important than security. In other words, i think the picture will start
> deterirating between 2003 and 2008, with a nice 20 year bear market
> (down or sideways) thereafter... But there is still time...
> FWIW
>
> Gwenn
>
>
> Jpilleafe@xxxxxxx wrote:
>
> > Dennis,
> >
> > I tend to agree with your premise here,....
> > Question: Realistically,...when do you think
> > the boomers could start becoming more defensive
> > ...in what year. Personally,..I think it could happen over the
> > next year or two....and confuse this whole demographic
> > scenario which is so universally accepted. Thanks.
> >
> > Jim Pilliod jpilleafe@xxxxxxx
>
>
>
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