muses of the moment

June 23, 2014

Interesting question

Filed under: Dollar Crisis, DOW and S&P500, Stock Market — totallygroovygirlfriday @ 12:50 pm

Charles Hugh Smith brings up an interesting question.  Who will boomers and their pension/401k plans sell their stocks to?

Click here.

It is possible that other countries and emerging markets might or maybe too big to fail banks with free Fed money, but this scenario suggests some sort of long-term decline at some point under even the best of circumstances.

gg is hoping that emerging markets will be over their contraction in 5-7 years and be able to pick up the selling slack when a large population of aging Americans are selling for cash. Otherwise it could get ugly.

Same thing is/will happen in housing. Seniors need the cash equity out of their home and there are limited buyers. gg has thought for a long time that this pressure, with the increased debt burden/low-income on young people will contribute to the long-term decline in real estate in the US and other first world economies.

This is a long-term pressure on a long term cycle tied to generational demographics.

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