ECONOMIST HARRY S. DENT, JR.
Wally Mackey, RFC®, and Tamara Christians, RFA®, are Lifetime Charter Members with a Master Certification of the Harry S. Dent Advisers Network and licensed to teach his research of economic forecasting using demographics and the adult spending pattern.
We are living in a new era of deflation, high national debt, and a stock market in a bubble boom. All bubbles crush soon or later. We recommend using our new generation indexed retirement strategies as suitable alternatives to stocks, mutual funds, and variable annuities. Dent forecasts a global stock market crash by January 2018. If you are a member of the X-Generation (much smaller in numbers sandwiched between Baby Boomers and Echo Boomers having been born between 1960 and 1977) or the Baby Boomer Generation (over 75 million), your number one priority today is to survive the next six years.
This is an historic period of time that will change every aspect of financial planning, taxation, stock market performance, the prices of commodities (gold and silver), and interest rates. Yet, few retirement planners are preparing their clients for the predictable, economic panic ahead. Everyone is going to experience challenging, frustrating, and dynamic changes in their financial lives! You’ll need a specially trained professional or you’re going to get hurt.
The next six years will change your life unless you have moved your money into something guaranteed safe. Yet, most individuals and couples haven’t even become aware of the dangers. Many people seem to be indifferent to the idea that the stock market has been in a series of “Boom and Bust Cycles” (1995-2023) and don’t believe the markets are currently in a bubble boom! Even the President Trump and the Republican Congress cannot keep everything from crashing.
The collective impact of the Baby Boomers’ spending pattern has been used to successfully predict individual stock and mutual fund performance for decades. We have simply looked at their purchases from the day they were born – increasing stock prices of companies selling baby cribs, baby clothes, and later bicycles and school supplies. Their spending pattern has driven stock prices through the years. Now, as they retire, they will be buying less and less!
Their spending peaked as they passed though ages 46-50, followed by their reduction of debt and their focus increasing their retirement savings. When you have 75 million paying off debt and putting money away for retirement, there is less money to buy things; and, frankly, Boomers have already brought their major purchases. They buy smaller cars and less frequently.
Their spending pattern forced inflation as they created profits, dividends, and higher stock prices for more companies across the board; but as they retire, their lower rate of spending will decline - forcing deflation, less profits and dividends, and lower stock prices. Retirees simply spend less money! When the largest generation in the history of the world retires, the rest of the population will not be able to replace their consumption of goods and services – not even the government.
They have been pouring massive amounts of money into their retirement accounts – mainly IRAs, 401(k) and 403(b) plans. In retirement, they will be taking small amounts out of these accounts year after year to supplement their social security. At some point, the current market madness will end, the markets will crash, and there will be less money for retirement expenses.
But, so far, the markets have weathered an international crisis, foreign market crashes, lower dividend returns, and near zero interest rates, solely because of our government’s interference called quantitative easing – which cannot continue forever. When QE stops and normal economic pressures return, Economist Harry S. Dent forecasts a 30-50% stock market crash by January 2018, slightly higher bond interest rates, and gold prices will drop to $700/oz. This time there will be no place to hide; except the products recommended by us!