August 16, 2011 – Brace Yourself. The US is Turning into Japan


1) Brace Yourself. The US is Turning into Japan. (SPX) As a silver tsunami of 80 million baby boomers retires, they will be followed by only 65 million from generation ‘X’. The intractable problems that unhappy Japan is facing will soon arrive at our shores. Boomers, therefore, better not count on the next generation to buy them out of their homes at nice premiums, especially if they are still living in the basement and not paying any rent. They are looking at best at an ‘L’ shaped recovery, which is a polite way of saying no recovery at all.

What are the investment implications of all of this? Get your money out of America, Europe, and Japan, and pour it into China, India, Brazil, Mongolia, Indonesia, Mexico, Malaysia and other emerging markets with healthy population pyramids. You want the wind behind your investment sails, not in your face with hurricane category five violence. Use any serious dip to load the boat with the emerging market ETF (EEM) and individual emerging market ETF’s.

The ‘Graying’ of America Bodes Ill for Investors