tag:blogger.com,1999:blog-7142388689060027269.post1050569867280297392..comments2015-09-22T05:06:06.600-04:00Comments on Make More. Keep More. Give More.: Up, Up, and Away?Ian Brennanhttp://www.blogger.com/profile/01907950576701716029noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7142388689060027269.post-25908856887562846522011-01-22T19:21:48.335-05:002011-01-22T19:21:48.335-05:00Thanks for the advice, Richard. I know there are ...Thanks for the advice, Richard. I know there are many people who prefer dividend paying stocks. My own personal preference is for capital appreciation. As you suggest, that may become harder and harder should enough people give up on buying stocks.Ian Brennanhttps://www.blogger.com/profile/01907950576701716029noreply@blogger.comtag:blogger.com,1999:blog-7142388689060027269.post-33093362969219512042011-01-12T14:57:18.781-05:002011-01-12T14:57:18.781-05:00Hi, Ian,
Thinking about the retirement of us baby...Hi, Ian,<br /><br />Thinking about the retirement of us baby boomers is much like watching a train wreck in slow motion.<br /><br />You can argue all you want about the implications but, unlike many other predicted catastrophes from global warming to oil shortages, it's an absolute fact that 80 million people start to turn 65 this year. Some have already retired.<br /><br />Will they all sell off all their stocks and bonds at once? No.<br /><br />But here's something that some commentators miss -- once they leave the workplace, they will STOP buying new shares of stocks. There go millions of dollars of buying pressure from mutual funds . . .<br /><br />And this is just in the U.S. There're many baby boomers in Europe (Canada too?) who are less likely than US boomers to plan to continue to work, full or part time, or start to businesses. <br /><br />What's going to happen to the EU when baby boomers riot for the old age pensions they've been promised since they were rioting hippies?<br /><br />Dr. Jeremy Siegel suggests that newly wealthy in developing countries such as China and India will buy up US stocks. That may be true, but not until the market goes down to painful, bargain basement levels.<br /><br />As time goes on, boomers'll sell off stocks that don't pay dividends, then either reinvest the money into stocks that do pay dividends (driving up their prices) or to pay bills or buy something.<br /><br />The DJIA is now about where it was eleven years ago. Eleven years from now, who knows? Stocks that don't pay dividends pay well be even lower.<br /><br />Buy dividend payers now, that's my advice.<br /><br /><a href="http://www.incomeinvesthome.com/blog/" rel="nofollow">income investing blog</a>IncomeInvestorhttps://www.blogger.com/profile/11116858746871693908noreply@blogger.com