Baby boomers

After this Globe and Mail column came out, I had a friend call and ask whether he should re-jig his portfolio to get rid of his auto stocks. The piece is about demographics, and specifically about the implications of the fact that people spend differently...

This is my latest article for the Globe and Mail..this time on 'Perennials' as older workers are sometimes called. Those over 55 now comprise about 23 per cent of the U.S. workforce and 21 per cent of the Canadian one, which should not surprise anyone....

What if you built a wall to keep people out, and it turned out that no one really wanted to get in anyway? Okay, some people might still want to enter the U.S. from Mexico and other countries which have typically supplied low skill labor,...

If I had to think of an industry prone to poisonous industrial relations battles I would probably think first or the auto sector, or maybe even something like education or health. The battles in those industries, however, are apparently being matched by orchestras (can I...

Here’s a new one to me: the ‘divorce mortgage’. No its not some crazy, invented term to describe a financing vehicle (my mind went back to ‘plain vanilla swaps’ from the days when derivatives were the buzz), but rather exactly what it sounds like: a...

Twenty and thirtysomethings would apparently rather buy experiences than things, and that has some very definite implications for retailers – or as least that is one theory. As this article from Bloomberg Business suggests, the stock market tells the tale of what is happening very...

When people rhyme off the things they want to do in retirement, ‘pay off debts’ is never on the list. Nevertheless, it is something that baby boomers will have to do anyway, if data from the New York Federal Reserve (NY Fed) is to be...

Like it or not, the sharing economy is everywhere. I’ll go as far as saying it will be one of the big economic stories of 2016, although its influence will extend far longer than that. It’s a different way to do business, and it works...

We all say it, and we worry about it too: we are an aging society, and that’s going to have repercussions. In Canada, the median age of the population is now close to 41 while in the U.S. it is still-youthful 37ish but rising (according...

I never thought I would admire Mallory Keaton, but I really do. Okay, the person I admire is actress Justine Bateman, not Mallory Keaton, the ditzy teenager she played on television show Family Ties (it ran from 1982 through 1989). For those of us who grew...

Is being a ‘solopreneur’ – someone who basically runs their own shop –a good thing or a bad thing for the economy? We had better figure it out, because apparently the number of them (us actually, I am one as well) are increasing a phenomenal...

I love this: the newest trend in travelling is ‘Literary Tourism’, or making a pilgrimage to the birthplaces of your favorite authors or the sites of their books. As this article from the Atlantic details, it is certainly a gentler way to vacation than doing...

I am no animal expert but I know this for sure: no dog secretly wants to dress up as a Chia pet for Halloween. Having said that, given that Buzzfeed is touting a Chia outfit as one of its ‘easy costume ideas for pets’ this...

It is kind of an urban myth, if you’ll pardon the pun: there is a story afoot that people are leaving the suburbs and moving back to the cities. I’ve written about the trend myself, but honestly perhaps the best evidence that it is true...

The first chapter of my book Economorphics deals with the  closing of the 'demographic window'. Taking things a bit further, in this Commentary piece for the Macdonald Laurier Institute I look at the implication for Canada of a closing window- and how the country can maybe...

See my Globe and Mail Economy Lab blog here ...

Aging population – market time bomb?

  Okay, that’s a sensationalistic way to put it, but that’s certainly one of the fears people have about an the shifting demographics in North America. Last time around I looked at how portfolio size tends to trend lower as people go past 65. All things being equal, the older the population gets, the more money that is going to be pulled out of the market. Question is, at what point does the ‘market time bomb’ thing go from sensationalism to reality – or does it?
This is the first in a series of blogs about the way that demographics are going to affect your investments. Yes, I know there has been a lot written on the topic, and most of us know the basic theory. The boomers poured a lot of money into the markets over the past couple of decades, and they made the markets go up. Now they are getting old (sorry if that term offends anyone, but the first wave of boomers is cashing in their pension checks as we speak) and they are going to be pulling the money out of their retirement accounts. This will make the markets go down. Really? Is it as simple as that?
Baby boomers are going to retire and take down the pension system. Generation X is lazy. Generation Y is spoiled and undisciplined, and they've pretty much blown out their eardrums by having them stuffed with ipods all the time anyway.