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Subject: Baby Boomers

A baby boomer is a person who was born during the demographic Post-World War II baby boom. The term “baby boomer” is sometimes used in a cultural context, and sometimes used to describe someone who was born during the post-WWII baby boom. Therefore, it is impossible to achieve broad consensus of a precise definition, even within a given territory. Different groups, organizations, individuals, and scholars may have widely varying opinions on what constitutes a baby boomer, both technically and culturally. Ascribing universal attributes to a broad generation is difficult, and some observers believe that it is inherently impossible. Nonetheless, many people have attempted to determine the broad cultural similarities and historical impact of the generation, and thus the term has gained widespread popular usage.
In general, baby boomers are associated with a rejection or redefinition of traditional values; however, many commentators have disputed the extent of that rejection, noting the widespread continuity of values with older and younger generations. In Europe and North America boomers are widely associated with privilege, as many grew up in a time of affluence. As a group, they were the healthiest, and wealthiest generation to that time, and amongst the first to grow up genuinely expecting the world to improve with time.
One of the unique features of Boomers was that they tended to think of themselves as a special generation, very different from those that had come before. In the 1960s, as the relatively large numbers of young people became teenagers and young adults, they, and those around them, created a very specific rhetoric around their cohort, and the change they were bringing about. This rhetoric had an important impact in the self perceptions of the boomers, as well as their tendency to define the world in terms of generations, which was a relatively new phenomenon.
The baby boom has been described variously as a “shockwave” and as “the pig in the python.” By the sheer force of its numbers, the boomers were a demographic bulge which remodeled society as it passed through it.
The term Generation Jones has been used by Jonathan Pontell to distinguish those born from 1954 onward from the earlier Baby Boomers. (Wikipedia Jan 2010)

US Bond Market

Consequences of a Democratic victory

Donkey economics bodes ill

The Democratic Party and its supporters have indicated a willingness to enact legislation that will reduce demand for bonds, while increasing supply: a recipe for lower bond prices and higher yields. Questionable economic policies are expected to include support for Fannie Mae, protectionist trade measures, and large pensions for unionized civil servants.

US stock market

Baby Boomers’ retirement prospects

Boomers' retirement may be less than expected

A study by Daniel R. Ackerman, CPA, suggests that Baby Boomers who count on the long-term equity returns of 8% may be disappointed, either because returns are simply not justified, or because, if they are, the supply of equities from Boomers trying to exit the market during retirement will be so great as to depress stock prices.

Reliance on income-based investment, rather than capital gains, may be a more prudent strategy.

World economy

Signs of US losing its groove?

The end of the American Century?

Thirty years ago, about the time the world went off the gold standard, US income from abroad was more than double the amount of income that the US paid to the rest of the world.

This surplus of investment income from abroad has been gradually diminishing. This year, or the next, this foreign income surplus may disappear forever. Does this mean that the US is ‘losing its groove’?

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Featured articles on inside pages

Stock buybacks

Warren Buffett attacks buyback schemes

In the 2005 Berkshire-Hathaway annual report, Warren Buffet points to the unethical aspects of the buyback-option schemes so common in the US stock market. He noted that "Too often ... the deck is stacked against investors when it comes to the CEO’s pay. ... every dime paid out in dividends reduces the value of all outstanding options"
More ...

Securities Analysis

Are investors being misled?

Mutual funds are sold primarily on the basis of 'performance' measured by historical 'total return'.The famous Morningstar 'star' rating system is based on 'total return', in this case 'risk-adjusted total return' relative to funds of the same asset category.
More ...

US Politics

Why Congress won't kill ACORN

Closely connected with President Obama, the ACORN group of "community organizers" has drawn censure from the Democrat-controlled Congress as a result of investigative reporting by James O'Keefe and Hannah Giles. More ...

US equities

Stock values and cash dividends wither

Wall Street ballyhoo and flim-flam to the contrary, the year 2005 closed-out half a decade of misery and pain for the average investor in US equities. Average cash dividend yields never surpassed 3.8% during the period, and most of this was consumed by taxes and management expenses of the open-end mutual funds. More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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2010-12-13 14:16