whilst slowly digesting the christmas festivities I starting reading one of my chrissy pressies. A book called ‘the coming generational storm’. Not a very optomistic title.
I guess generations have been saying this intergenrational things ince the greeks. Plato said : look at todays youth; no wonder society is going down the toilet. And we still hear it today.
It’s uncommon to see the reverse though : look at todays middle aged, surely society is stuffed. Demographically the book argues BB’s have not saved enough and will have to reverse tax future generations (ie get subsidised by gen X,Y,Z). It puts successive asset bubbles (stocks, then R/E) in the context of BB bidding up their values and binging on debt. Also interesting things about the effects of aging on our society.
So what are we heading for ?? The main cause of people going to nursing homes is dementia. Roughly <1% of people at age 60 have dementia, 1% at 65, 15% at 75, 50% at 85. An exponential increase after age 60. As the population ages, this will be one humungous problem. No one likes to think of themselves or their beloved parents becoming demented but that seems to be what happens to aging brains (fortunately not mine for at least 20 years…)
What does this mean for property or other asset classes ?? Well I have never held any gold or oil stocks before but this book has motivated me to make a new years resolution to add these to my portfolio.
If you’re in the estate planning/taxation law/ memory clinic field, you could benefit from this old age and dementia epidemic
What if the sky came crashing down?
Or the Earth opened up, causing freak tidle waves?
No matter what happens, there will be winners or losers. Don’t act just cause a book has given you some scenario’s?
Create a plan, follow your plan. Proactive not reactive.
Merry Christmas
Byronent
Adelaide SAThe Earth did open up causing freak tidal waves.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdThat was my point, we are still here and still looking for ways to invest. We adapt and as things change so do most of us.
Just a part of life and the challenges we continually face
Byronent
Adelaide SAI have a cunning plan, it is to time markets where I have a likely directional view and to remain diversified the rest of the time. Another part of the plan is not to get wiped out by earthquakes, tidal waves, interest rate hikes, recessions and other events that although uncommon are likely to occur every couple of decades. An add on of the plan is to use likely fundamental changes based on demographics or anything else I can think of or find in the yard.
Great plan, once perfected, you could make millions selling how to use it to the rest of us.
Byronent
Adelaide SAyeh, or I could be wrong holding a cash, comercial property tust, oil, gold and underperforming badly. In which case I would have to quickly change the plan to cunning plan mark 438.
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