Baby Boomers & Investments
Washington, DC. Nov 8th, 2005 ---- Since 1992 I have been predicting the effects of $3 Trillion (now reevaluated as nearer $41 trillion) in inherited wealth hitting the marketplace and which way the Baby Boomers would jump with their money. Government, Wall Street and the media are finally taking notice and chatter has reached a high level.
Suddenly the fact that 79,000,000 people in the USA with $41 Trillion burning a hole in their pockets are changing their lifestyle is staring the planners straight in the face. Already Investment Managers are calling us asking about Leisure and Tourism Intelligence. They are seeing huge increases in demand for Casinos, Restaurants, Resorts and leisure in general. But everyone has been busy tracking telecom's, computers, energy, technology and military hardware that nobody believed it worth their while to track leisure. Many are amazed that we predicted this epiphany back in 1992 when LTN was launched, and LTNN the news service for leisure.
What we have not known for all these years was which way the Boomers would jump with their wealth. The bureaucrats believed they would invest in stocks and Government Bonds to show their patriotic side. That was the belief throughout the 1990's. But as George W Bush is squandering the nation's wealth on foolhardy ideas of Oil domination, and borrowing hundreds of billions from the Chinese Government to fund his tax cuts, there has been a sudden shift in the intentions of the Baby Boomers. They see the value of their savings plummet as their buying power is decimated by bad decisions from Washington. They see workers pension schemes abandoned to maintain profits for the wealthy. They have decided on living their remaining years to the full, maybe continuing some kind of work, but playing more and more.
Leisure time has been a joke in the United States, as employers have stiffed their workers with only a few days vacations a year. Now many are retiring they find the promises of a good life with a good pension just another scam by the Robber Barons of Industry. Others, seeing their neighbor get stiffed they splash out on RV's, Boats and a second home in a Golf Resort. Why should they save to have their money wasted on military hardware.
There are a new set of problems now for the taskmasters in Washington. If these Baby Boomers decide to spread their parents wealth around the Caribbean instead of Detroit, Chicago and Pittsburgh then it will not be available for them to spend on Pork. It won't be long before the high end Boomers realize that such things as Panamanian Family Foundations that exist to shield the earnings of the Robber Barons of Industry can be used to shield their inheritance. The attraction of the Caribbean then becomes even more powerful. Live and play in luxury.
Then of course there is Cuba. A positive leisure jewel untouched by corporate sprawl and outside of the dreams of Americans for the time being. Europeans and Canadians on the other hand don't have the stigma of the Bay of Pigs defeat to stop them investing heavily, and reaping the benefits.
The planners in Washington see nothing but problems if workers start to enjoy themselves, especially overseas. It's one thing having workers wages being spent in Casinos in Atlantic City, Las Vegas or Mississippi, but if that wealth moves offshore then fewer bombs will be available to level villages in the Middle East.
But wait, there is more! We are not taking into account the Baby Boomers in Europe, Japan and the rest of the world. Surely this is the biggest opportunity for companies and investors to shift from technology to leisure stocks. True but few have been tracking Leisure and Tourism. Cell phones and pharmaceuticals have been big earners, so who wants to track what 60+ year olds do with their leisure time. Don't they just take walks around the Park?
Better get loading those keywords into the tracking dictionaries. This is Huge!
(On Nov 18th 2005 the figures were recalculated and appear nearer $41 trillion)