[AMRadio] BAs and Baby Boomers

[ronnie.hull]

in my case, it will take a helluva vault!!!  GK500's, Homebrews in 7' 
cabinets, 390' and A4's...

maybe they can just stack them all around me and torch us all off LOL

R



---------- Original Message -----------
From: "Merz Donald S" <merz.ds at mellon.com>
To: "'Amradio (E-mail)" <amradio at mailman.qth.net>, "'Glowbugs (E-mail)" 
<glowbugs at piobaire.mines.uidaho.edu>
Sent: Mon, 12 Apr 2004 17:30:06 -0400
Subject: [AMRadio] BAs and Baby Boomers

> Q: What do baby boomers have to do with boatanchors?
> A: Anything, and -- not to put too fine a point on it, everything. 
> 
> Let me explain.
> 
> A baby boomer is a person born between the years of 1946 and 1964. 
> Every country on Earth has a significant baby boomer generation. In 
> the USA, the baby boom generation is over 26% of the population. The 
> current aggregate income of USA baby boomers is $4.1 trillion. They 
> (we) use this income to account for 40% of total demand and almost 
> 50% of all discretionary spending. Boomers hold 80% of the cash and 
> 79% of all the assets that exist--including --ta-da-- boatanchors.
> 
> So what? Well, 46 + 65 = 2011. The boomers are retiring soon. 
> Actually, due to early retirements and other factors, significant 
> increases in retirements will begin between 2006 and 2008. By 2011,
>  retirement-mania will be in full swing. Sometime shortly thereafter,
>  "the largest wealth transfer in history" begins to take place. A 
> minimum of $41 TRILLION will begin transferring "from parents to 
> children and from philanthropists to charities."
> 
> Economists only have this figured out in the broadest terms. But 
> sometime between 2011 and 2021, the baby boomers will become what is 
> called "net sellers of investments". That means that you and I will 
> unload more boatanchors than we buy. Economists disagree about what 
> this means for the financial markets. The gloomy ones say that this 
> will usher in a "structural bear market that could last throughout 
> much of the second quarter of the 21st Century." But let's deal with 
> boatanchors here.
> 
> I changed the wording in the paragraph below to say "boatanchors" 
> everywhere it used to say "financial holdings". But this is from an 
> insurance industry report:
> 
> "At first, the older Boomers will begin selling some of their BAs, 
> but the sales will be absorbed rather easily by the larger number of 
> younger Boomers who are still eagerly buying. Eventually, though,
>  even the middle and younger-aged Boomers will want to liquidate 
> some of their boatanchors. Who can they sell to? The only options 
> seem to be the much smaller and more financially pressed "Generation 
> X" that grew up in the shadow of the boom, or the potentially larger 
> and more promising market of buyers from overseas."
> 
> This is why you and me have anything and everything to do with 
> boatanchors. We own practically all of them. And we all need to get 
> rid of them over the next 15 to 25 years. Worse, the only market we 
> have for them is "much smaller and financially pressed". 
> 
> A word to the wise should be sufficient. Keep your collection in 
> touch with the demographics and the concepts of supply and demand. 
> BAs are fun. But they are not good long term investments. It's just 
> that simple.
> 
> Since no one is going to want them, I am planning to be buried with 
> mine--like the ancient Egyptian mummies with their cats.
> 
> 73, Don Merz, N3RHT
> 
> Quotes are from various insurance industry reports on the web and 
> the World Future Society. 
>   
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------- End of Original Message -------