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PowerShares DB US Dollar Bullish ETF Message Board

  • itsafreecountryaintit itsafreecountryaintit Apr 12, 2012 12:10 PM Flag

    Fed declares war on Baby Boomers

    Today, millions of Baby Boomers are:
    1) Retired and out of the work force; either voluntarily or involuntarily (lay-offs, health issues).
    2) Assessing leaving work force within 5 years.
    3) Winding down their peak earning years.

    Financial planners recommend that as retirement approaches people should shift more assets (401k, IRAs, Investments, Savings) toward capital preservation (cash, fixed income, etc.) and less toward stocks or other risk classes.

    This is established life-cycle financial planning advice.

    Meanwhile, in recent testimony to the Congress, Federal Reserve chairman, Mr. Bernanke, was asked (paraphrased): what do you say to people who are concerned that the value of the dollar is being reduced by X% each month? His reply was astonishing to Baby Boomers (paraphrased): First I would say that the primary investment method for people who ask this, is a mattress....

    Two Questions:

    What does this imply for all those people who are trying as hard as possible to save and protect their hard earned money by shifting more away from higher risk assets?

    Does the fed believe that any genuine economic recovery is possible if Baby Boomer assets are eroded, if they have to stay in, or return to the work force and compete for jobs against the younger population, and if their substantial economic buying power is diminished?

    Facts: 76 Million Baby Boomers were born from 1945-1964 and studies have shown these Baby Boomers currently hold over 80% of personal financial assets and generate more than 50% of U.S. discretionary spending power. They are responsible for more than half of all consumer spending, buy 77% of all prescription drugs, 61% of OTC medication and 80% of all leisure travel.

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