Do households know they are taking on more risk?
Article Abstract:
Baby boom households are increasing their financial risk by transferring funds out of bonds and certificates of deposit into stocks to counterbalance the low retirement savings rate. However, the market is likely to experience significant shifts as baby boomers retire and withdrawal their funds, making high-risk investments even higher than before. Baby boomers still have optimistic and unrealistic expectations for both their promotion future and their investment returns. They need to be aware of their investment risk and diversify their assets to reduce risk, such as through holding bonds.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1997
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The business cycle has not been eliminated
Article Abstract:
Many corporations and investors are acting like the business cycle no longer exists, but economic indicators suggest that the business cycle is still present in a changed form. The business cycle has apparently lengthened, and the economic excesses that have triggered recessions in the past are now being corrected by the markets and the Federal Reserve. Consumer and capital spending are in line to support continued sustainable growth. Budgetary restraint and the strong dollar could slow growth, but they also can help to contain inflationary pressures.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1997
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Waiting for $12 trillion
Article Abstract:
The inherited money that the baby boomer generation seems to be counting on to pay for retirement will not retain its purchasing power unless it is invested in making the next generation more productive. The post-boomer generation can expect its productivity to support the previous generation, itself, its children, and foreign investors. There simply will not be enough wuthout more investment in their educations and tools, meaning many may refuse to work, raising inflation and reducing savings' purchasing power.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1995
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