Shrinking Labor Force May Curb U.S. Expansion for Two Decades

[ctr70]

Lot’s of articles out lately how baby boom retirees could depress stocks for decades, one by the federal reserve. Makes you wonder if buy & hold Index fund investing is dead for a long time?

http://www.bloomberg.com/news/2011-08-30/aging-baby-boomers-shrinking-labor-force-may-curb-u-s-growth-for-20-years.html

http://www.bloomberg.com/news/2011-08-22/baby-boomers-selling-shares-may-depress-stocks-for-decades-fed-paper-says.html

http://ftalphaville.ft.com/blog/2011/08/22/659316/demographics-and-destiny-labour-force-and-consumer-spending-edition/

[bearishgurl]

I’m a “baby boomer” but I’ve only had exposure to the stock market for about 18 years (thru retirement accts). I have recently gone “all-cash” and will not reinvest.

If one is nearing retirement and can no longer risk potential loss of principal, then it stands to reason that they will pull out of the stock market if they have exposure to it in these volatile times.

I have no doubt that many of my “compadres” agree with this.

[bearishgurl]

I’m a “baby boomer” but I’ve only had exposure to the stock market for about 18 years (thru retirement accts). I have recently gone “all-cash” and will not reinvest.

If one is nearing retirement and can no longer risk potential loss of principal, then it stands to reason that they will pull out of the stock market if they have exposure to it in these volatile times.

I have no doubt that many of my “compadres” agree with this.

[bearishgurl]

I’m a “baby boomer” but I’ve only had exposure to the stock market for about 18 years (thru retirement accts). I have recently gone “all-cash” and will not reinvest.

If one is nearing retirement and can no longer risk potential loss of principal, then it stands to reason that they will pull out of the stock market if they have exposure to it in these volatile times.

I have no doubt that many of my “compadres” agree with this.

[Huckleberry]

BG, I’m with you 100%.

I have been in the market for almost 25 years now in various ways including day trading (of which I did not make millions, LOL…)

From all of the professional newsletters I follow, 90% are shouting “watch out below” for the next decade. These premise are based on:

1. Baby boomers pulling out of stocks (http://www.frbsf.org/publications/economics/letter/2011/el2011-26.html)

2. ECRI reporting new recession through 2013

3. Persistent high unemployment

4. Higher taxes

5. Per Bernanke – Killer inflation coming in future (http://www.theonion.com/articles/drunken-ben-bernanke-tells-everyone-at-neighborhoo,21059/)

I recently sold all of my 401K stock holdings and bought bonds. Ticker: PTTRX.

I also sold all stocks in my taxable brokerage accounts and purchased high yield corporate bonds. Ticker: VCLT.

[Huckleberry]

BG, I’m with you 100%.

I have been in the market for almost 25 years now in various ways including day trading (of which I did not make millions, LOL…)

From all of the professional newsletters I follow, 90% are shouting “watch out below” for the next decade. These premise are based on:

1. Baby boomers pulling out of stocks (http://www.frbsf.org/publications/economics/letter/2011/el2011-26.html)

2. ECRI reporting new recession through 2013

3. Persistent high unemployment

4. Higher taxes

5. Per Bernanke – Killer inflation coming in future (http://www.theonion.com/articles/drunken-ben-bernanke-tells-everyone-at-neighborhoo,21059/)

I recently sold all of my 401K stock holdings and bought bonds. Ticker: PTTRX.

I also sold all stocks in my taxable brokerage accounts and purchased high yield corporate bonds. Ticker: VCLT.

[Huckleberry]

BG, I’m with you 100%.

I have been in the market for almost 25 years now in various ways including day trading (of which I did not make millions, LOL…)

From all of the professional newsletters I follow, 90% are shouting “watch out below” for the next decade. These premise are based on:

1. Baby boomers pulling out of stocks (http://www.frbsf.org/publications/economics/letter/2011/el2011-26.html)

2. ECRI reporting new recession through 2013

3. Persistent high unemployment

4. Higher taxes

5. Per Bernanke – Killer inflation coming in future (http://www.theonion.com/articles/drunken-ben-bernanke-tells-everyone-at-neighborhoo,21059/)

I recently sold all of my 401K stock holdings and bought bonds. Ticker: PTTRX.

I also sold all stocks in my taxable brokerage accounts and purchased high yield corporate bonds. Ticker: VCLT.

[CAwireman]

BG,

Agree agree – all cash for now and a long time to come.

Huck – you know that Bernanke link is a parody? Right?

The government either failed to realize, or didn’t care that keeping the financial market stable was vital to retirement plans for us middle class folks. Now that the rug has been pulled out from under any fund having plausible stability, who can afford to continue gambling, and to gamble with significantly less than they had??

I tend to disagree with the overall premise of the articles because its quite likely if not a certainty that the employed of retirement age, are lacking the funds to retire. So, the retirement explosion will be more of a damp thud, if anything.

If people began retiring as predicted, it would be a godsend for those currently unemployed but employable. Problem as I see it – workers retirement funds aren’t sufficient so they won’t retire, and the unemployed will continue to struggle to find jobs.

A properly funded retirement for those of retirement age, under current circumstances, would be a bigger positive than negative.

[CAwireman]

BG,

Agree agree – all cash for now and a long time to come.

Huck – you know that Bernanke link is a parody? Right?

The government either failed to realize, or didn’t care that keeping the financial market stable was vital to retirement plans for us middle class folks. Now that the rug has been pulled out from under any fund having plausible stability, who can afford to continue gambling, and to gamble with significantly less than they had??

I tend to disagree with the overall premise of the articles because its quite likely if not a certainty that the employed of retirement age, are lacking the funds to retire. So, the retirement explosion will be more of a damp thud, if anything.

If people began retiring as predicted, it would be a godsend for those currently unemployed but employable. Problem as I see it – workers retirement funds aren’t sufficient so they won’t retire, and the unemployed will continue to struggle to find jobs.

A properly funded retirement for those of retirement age, under current circumstances, would be a bigger positive than negative.

[CAwireman]

BG,

Agree agree – all cash for now and a long time to come.

Huck – you know that Bernanke link is a parody? Right?

The government either failed to realize, or didn’t care that keeping the financial market stable was vital to retirement plans for us middle class folks. Now that the rug has been pulled out from under any fund having plausible stability, who can afford to continue gambling, and to gamble with significantly less than they had??

I tend to disagree with the overall premise of the articles because its quite likely if not a certainty that the employed of retirement age, are lacking the funds to retire. So, the retirement explosion will be more of a damp thud, if anything.

If people began retiring as predicted, it would be a godsend for those currently unemployed but employable. Problem as I see it – workers retirement funds aren’t sufficient so they won’t retire, and the unemployed will continue to struggle to find jobs.

A properly funded retirement for those of retirement age, under current circumstances, would be a bigger positive than negative.

[briansd1]

That’s why I believe that we need increased immigration to expand the labor markets and provide the service workers to take care of old, sick, obese Americans.

[briansd1]

That’s why I believe that we need increased immigration to expand the labor markets and provide the service workers to take care of old, sick, obese Americans.

[briansd1]

That’s why I believe that we need increased immigration to expand the labor markets and provide the service workers to take care of old, sick, obese Americans.

[Coronita]

[quote=briansd1]That’s why I believe that we need increased immigration to expand the labor markets and provide the service workers to take care of old, sick, obese Americans.[/quote]

I would agree with that provided the type of immigration is for semi-skilled or higher skilled workers who would be putting dollars into the system via paying taxes, and not people that would be taxing dollars out of the system via tax subsidies.

[Coronita]

[quote=briansd1]That’s why I believe that we need increased immigration to expand the labor markets and provide the service workers to take care of old, sick, obese Americans.[/quote]

I would agree with that provided the type of immigration is for semi-skilled or higher skilled workers who would be putting dollars into the system via paying taxes, and not people that would be taxing dollars out of the system via tax subsidies.

[Author]

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