baby boomers investment

(revised and expanded April, 2021)

Baby Boomers have been accused of everything from greed to destruction of a culture. One thing that is substantiated by many studies and bank account balances is the Baby Boomer economic impact is massive.

This has not gone unnoticed by the media. Below are four article that shine a bright light on Baby Boomer economic impact.

How Baby Boomers Affect Your Stocks – Motely Fool

The Baby Boomer economic impact causes economists and stock market mavens to take notice. The sheer size of the generation is bound to move financial indicators.

This article points out as more and more Baby Boomers retire each day some major sectors of the economy could be eroded. Throughout there lifetime they purchased many cars. They witnessed the emergence of new makes and models. Auto manufacturers, like Ford, realize that the demand for their products will decline as Baby Boomers retire.

Coffee has been Americans premier drink for decades. As they age, Baby Boomers cut back on their caffeine. Baby Boomer economic impact on this sector not only be felt in the USA. The coffee producing countries from Kenya to Columbia will witness a decrease in demand for their prime export product.

On the other end of the spectrum Baby Boomer economic impact will be welcomed in the healthcare and pharmaceutical sectors. Travel and long-term leisure housing developments will also see a major uptick.

How will Baby Boomers’ retirement affect stocks? – USA Today

A good decade in the market often follows a bad one. But the big question: If Boomers follow the usual pattern of shifting their portfolio mix toward income-generating investments — bank CDs, bonds and dividend-paying stocks — will the stock market’s long dry spell drag on?

Baby Boomers did not place saving as a high priority.  So, as they retire their spending will substantially decrease.  Baby Boomer economic impact in future will not go unnoticed.

The article points out that even with Baby Boomer economic impact being great, it will probably not mean as much as wars, disasters, and civil unrest.

The Effect of Baby Boomer Retirements on the Stock Market –

In many cases, boomers already hold a well-diversified portfolio, so there won’t be a precipitous change. In addition, those with the largest portfolios are more likely to be concerned with passing their wealth to the next generation (estate tax be damned!) than they are with preserving principal in the short-term.

We need to keep in mind that Baby Boomers are not a monolith.  Just like in the broader economy, some Baby Boomers are extremely wealthy while the number of middle-class has de  creased over the past decades.  Others will barely scrap by in retirement.

Baby boomers’ effect on equity prices: a tsunami or a tempest in a tea pot? – Entrepreneur

Entrepreneur magazine centers its attention on innovation and startup businesses.  Without a doubt the Baby Boomer economic impact on this sector could be great.  Those Boomers who were successful, innovative entrepreneurs have now shepherded their ventures into seasoned companies producing well-known products.   

Conversely, Baby Boomer entrepreneurs are putting some of their innovation and startup wealth into businesses and products spawned by the generations that follow them.

baby boomer economic impact

Four ways to play the baby-boom effect – CNNMoney

Whatever the macroeconomic impact of our aging population, baby-boomers will continue to have a big influence on a wide array of industries. Healthcare is the most obvious, given the increasing medical needs that come with age, but travel, financial services, and technology will also be affected. Picking stocks based on that notion is a tricky proposition – demographic forecasts might already be priced in, or the effects on a particular company might be murky. The key, investing pros say, is to zero in on solid stocks with good fundamentals that should benefit from larger trends.

How Boomers Will Impact the Health Care Industry  – CNBC    

As the first wave of Baby Boomers reaches retirement age, predictions for the nation’s health care system have been nothing short of apocalyptic.  Many predict the surge in demand for medical care associated with the aging population will so strain our resources that future generations will face permanently higher inflation, higher taxes – or both.



By Chowning

Richard Chowning was a teenager during the 60s. Being a Southern California resident during those years, he experienced many of the events and trends that distinguished those times.

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