Thursday, March 8, 2012

Demographic trends will increase portfolio returns.

Good News for Boomers

Demographic trends will increase portfolio returns.

As retirees live longer and keep stocks and bonds , there will be younger investors trying to buy those securities, keeping prices up.

Meanwhile, weak demand from boomers and a big supply of unemployed workers will bring down the prices of goods and services the boomers need.

Tuesday, March 6, 2012

When something of value is free

When something of value is free, it runs out fast and only the well connected get any.

Interest rates at zero cause cheap credit for those with special access but shortage for small business.

Keeping rates artificially low makes the bond market useless as indicator of risk across the economy.