| AUG 1991
The Baby Bulge Begins by John Sweeney
The Baby Bulge Begins by John Sweeney Our Technical Editor opines about the demographic effect the baby boomer generation is having on the stock market. Is 38% of the value in the market unaccountable? What could explain such a discrepancy? Goldman, Sachs & Co. limited partner Barrie Wigmore (The Wall Street Journal , June 5, 1991) picked apart the market's advances in the 1980s but found that interest rates, higher earnings and ""overly optimistic earnings estimates"" couldn't account for more than 62% of the gains in that decade. Wigmore and economic luminary Robert Shiller (of Yale University) both professed that they were puzzled: ""Something else was driving the market. It's something intangible."" Actually, it's the opening bars of the demographic effect. The baby boom is entering the investment age, with all the qualities necessary to drive the markets higher: money, inexperience and hubris. The recently heralded ""return of the small investor""? It's chickens to the plucking. (This time, they rationalize, they're going to be smart, use mutual funds and be protected by professional advice. Dream on.)
by Bulge Begins by John Sweeney
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.