Valkyrie's Account Talk

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Pal says the third biggest issue facing stocks involves the baby boomers, Americans born between the mid 1940s and mid 1960s. They face an annual requirement to sell about 5% of their individual retirement accounts, loaded with stocks in some cases, as they reach 70.5 years old.
“The problem is the gap between this year and last year is huge. It’s like 50% increase in the amount of selling that has to be done,” said Pal. “They have to start selling by year-end. If you take out the Christmas week and you’re a financial adviser, and you want to get this done early, you will start in October.”
He blames boomer selling for part of the meltdown for stocks late last year. “The marginal change of an American baby boomer thinking ‘I’ve got too much equities,’ which they do have — that is catastrophic for the system, because they have way, way too much risk,” says Pal, co-founder of Real Vision financial television.

https://www.marketwatch.com/story/e...ltdown-is-inevitable-2019-10-10?mod=home-page
 
Yep. That is a great point. I think there will be lots of issues that crop due to baby boomers aging, leaving the work force, retiring and then passing on. While there is a big increase now in medical needs, health insurance, prescription drugs, skilled nursing facility care, home health, eating out, funeral services, banking, equities, housing, etc.... as they age and pass on, what then? If the LAST of the baby boomers pass away (i.e. 30 years from now--at say age 85--2049), between now and then at some point the high point in needed services will be reached and then start to drastically taper off. So while health stocks are high now, they might not be so great as we go on. Same thing with housing starts, etc. …. Well... unless the millennials get real "busy" in more ways than one! :D …. then again, I guess we could just let the world invade the country... but then we would just have other little issues to deal with like more taxes...$$$$$$...to pay for others to hang out at the beach, etc.... okay... okay... yes I am not near a beach, but we do have lots of highway underpasses that folks like to hang out at all day and pitch tents...and I hear they are starting to pitch their homes on the sidewalks near the Capitol building down town... bottom line... if you didn't know it, Austin is becoming the LA of Texas....starting to look like LA and San Francisco...public defecation, needles, etc..... time to move away......:(

Californian's are scampering away from the filthy messy high-tax beds they have made for themselves there, and are now moving to Texas...unfortunately they did not leave their crappy ways there when they left. So they are just going to create another crappy bed to lay in for a time....and polluting my back yard in the process. I hope they figure out the error of their ways before they turn Texas in to California.
 
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Valkyrie's Account Talk

So now the boomers are to blame for everything because they are getting old and dying?:notrust:

How many boomers are the ones shitting in your streets? A percentage perhaps but more xers and millennials I bet. I didn’t look it up.

The world is changing young persons, deal with it instead of whining about the boomers screwing everything up by existing.

Boomers whined about what our parents left us too. The world moves on.

PO:D
 
56 yrs ago today

Assassination of John F. Kennedy
John Fitzgerald Kennedy, the 35th President of the United States, was assassinated on November 22, 1963, at 12:30 p.m. Central Standard Time in Dallas, Texas, while riding in a presidential motorcade through Dealey Plaza. Kennedy was riding with his wife Jacqueline, Texas Governor John Connally, and Connally's wife Nellie when he was fatally shot by former U.S. Marine Lee Harvey Oswald firing in ambush from a nearby building. Governor Connally was seriously wounded in the attack. The motorcade rushed to Parkland Memorial Hospital where President Kennedy was pronounced dead about 30 minutes after the shooting; Connally recovered.

the last true democrat to hold office in the White House. He would not recognize that party today.
 
this has to mean something? good or bad?

https://www.wsj.com/articles/fed-ad...ance-sheet-moves-to-4-07-trillion-11575642409

The Fed has been intervening in markets in the current fashion since mid-September, when short-term rates unexpectedly shot up on a confluence of factors, the biggest of which stemmed from corporate tax payments and the settlement of Treasury debt auctions.

The Fed also bought $7.5 billion in Treasury bills on Friday. Eligible banks offered the Fed $23.17 billion.
The central bank currently expects to buy Treasury bills through the middle of next year.
On Thursday, the Fed reported that its balance sheet had risen from $3.8 trillion in September to $4.07 trillion as of Wednesday. Some $208 billion in repo interventions were also outstanding as of Wednesday.
The Fed is also taking stock of whether post-financial-crisis banking regulations may be causing issues in the markets by driving banks to hold reserves over other highly liquid securities. It is also weighing whether it might expand its tool kit with a facility that would allow eligible financial firms that hold high-quality securities to exchange them for reserves quickly at the Fed.
 
The 5 minute video at the link you posted does a great job of explaining the whole bond buy back and repo issue going on. I always have to think it through. Please correct me if Im wrong....

So Fed gave banks cash in return for loans backed by the Bank-owned Treasury and mortgage securities to give the banks cash (the liquidity) they needed to operate back in September when the banks were unable to get very quick short-term loans (i.e. cash) from money markets to meet their immediate cash operating needs. The cash shortage in money markets was caused on 9/16 & 17 because cash had been used by corporations to pay for huge quarterly taxes due on 9/16, plus payouts for Treasury debt auctions and because of minimum cash reserves that banks are required to keep on hand. The outflow of Fed cash loaned to banks (collaterized by bank-owned securities) adds to the Govt debt on Fed Reserve books. I am hoping I got that right... :rolleyes: Thanks Valkyrie !!! :smile:

PS. As to whether continued pumping of cash into financial system is good or bad, it sounds like equities stay artificially pumped up for a few months into next year. At some point, the music will stop?? I think this is why Coolhand keeps talking about X22 report and financial system. Just hope there is never a run on the banks. The fact that Fed had to step in to give banks cash to operate tells me that financial system seems vulnerable. Best to keep some cash and gold stashed...just in case....a collapse may never happen but you just never know....
 
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Great articles Valkyrie! Wow! This is sounding really bad and scary..... hope we are not in market when this bubble explodes...:worried:
 
I started to notice for me at least that every 2-3% increase on avg of my balance there is a pull back of some sort. So I go back to G or F or a 50/50 of them when I hit that 2-3%.
So being retired I feel safe and seeing increases in my balance with that plan.
 
Missed the cut off so decision made for me. Oh well, BQuat is nibbling so maybe staying in is a good thing! Have a great weekend everyone!!!
 
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