From my perspective, I think
the better bet is becoming a longer term investor and betting on the baby boomers.
Here is why.
Who are the Baby
Boomers?
You may be wondering just
exactly who are the baby boomers? Well, I am one of them. Baby boomers have
been one of the most dramatic and influential demographic trends in the history
of the United States. As baby boomers are aging, I believe they are prepared
to write their final and most dramatic chapter yet. And they are likely to influence
the social, business and political fibers of the nation for the next quarter
century, all the while creating the potential for unbelievable investment opportunities
for us long-term investors in a short-term world.
Baby boomers were born between
1946 and 1964. In all, there are 76 million of them. The generation prior to
the baby boomers (born between 1927 and 1945), numbered only 49 million. That's
why it is called a “baby boom.” Viewed another way, over one-third
of all living Americans today are baby boomers. When one-third of a country's
population can be categorized or classified into one group, not only is that
group likely to have great influence, but everything that group touches is likely
to change forever. The baby boomers have redefined every stage of their lives.
You see, when a few hundred people share an idea, it is interesting. And when
a few thousand people share an idea, it may amount to a trend. But when a few
million people share an idea, it's a movement. When 76 million people share
an idea, it's a revolution.
A Decade-by- Decade
Look at the Baby Boomers
To clearly understand what
this revolution may mean going forward, maybe we should start by looking backward.
At every single stage of their lives, the needs and desires of baby boomers
have become the dominant concern for American business and political leaders.
Let's take a quick look back at what the baby boomers did on a decade-by-decade
basis since they first arrived on the scene.
In the 1950’s, when
baby boomers first arrived, something happened that had never occurred before
in the history of the United States. There was a diaper industry. And it didn't
stop there. As these young baby boomers began to walk, their parents had to
put shoes on their feet and the baby shoe sector experienced an explosive growth
rate unlike anything it had ever seen before, or has experienced since that
time. And when baby boomers took their first steps, they had to be recorded
for prosperity. And the photo and camera industry took off as a result.
In the 1960’s, elementary
school buildings sprang up everywhere, as did the craze for hula hoops, Barbie
dolls and skateboards. And on almost every corner, fast food restaurants were
springing up as the baby boomer kids craved hamburgers, fries, fried chicken
and pizza. In the 1970’s, baby boomers were becoming young adults and
wanted to settle down, get married and raise families. And as the baby boomers
sought homes for their families; it created the real estate explosion the country
witnessed in the 1970’s.
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