Osama bin Laden is dead! It is so fitting to see the end of the leading commander of that long-simmering wave of terrorism, who woke up America in 2001 to the biggest threat to the Technology and Global Revolutions that were sweeping capitalism and democracy across the world. It has been an amazing decade, and in so many ways, it all started in the late '90s as the Technology Revolution was changing the way we lived, worked and played. We dont' give it its due, but without the amazing new worlds that technology has allowed us to enter, the benefits and the problems of the last decade (the last 20 years really) would have been so much tamer.
So today, at the end of this "Turbulence Phase," we find ourselves with the highest productivity of any major world power, with corporate cash at the highest and their balance sheets at the strongest, with earnings soaring, and most notably, with those countries that have been the hot-bed of terrorism going through a massive uprising and search for freedom. The 10-year struggle has been tough, and it still is, but we are well of the middle period of that war, and freedom and democracy are winning.
That is one part of the story. The other part is that this is the beginning year of when our Baby Boomers reach retirment age. We now have a 17-year window for when they start that new phase of their life. The Baby Boomers have determined the personality of the country (and world), since they first came into this world and blessed the "Gerber" generation. So, tell us Baby Boomers, what is the next 17 years going to bring - a hippie reunion or a return to Woodstock? No way! The next 17 years is going to be spent on trying to pay for your retirment. However, there is still several trillion dollars sitting in money market and low-paying savings accounts as you can see in the chart below.
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Ladies and Gentlement, all you Baby Boomers out there, the only place you are going to find the excitement that you found at Woodstock 40 years ago is the "financial Woodstock" known as the stock market. So get dressed up in your most mature duds, and come along. Bring your money market acounts, and you'll have a great time.
To read today's complete Market Comment, click here.
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