President Barrack Obama certainly arrives at a party like a rock star.

Three silver GM Suburban?s flanking a hulking, armored black Cadillac limo screech to a halt with lights flashing. All of the roads in the immediate vicinity are closed to traffic.

A dozen sunglasses bedecked Secret Service agents leap out, immediately scanning the perimeter. The president bounds out and briskly walks to the plush home of a wealthy supporter.

I managed to briefly touch base with the president during his recent fund raising swing through the San Francisco Bay area. There, I received a sweaty handshake and a thank you from the former South Chicago community organizer.

It was all part of a broad swing through the Western states to rally the faithful, and to top off the DNC's coffers, which has raised a record $50 million in California this year. Perhaps Obama just wants to be among friends. While his national job approval rating languishes at 47%, it is 55% here, and an eye popping 72% among Democrats.

Since the 2012 election, some 6 million millennials, generation Y's, or echo boomers have gained the right to vote. Have you spoken to your kids lately? The only issues they care about, the environment, global warming, gay rights, and ending the war, are overwhelmingly Democratic ones. Another 4 million immigrants have also joined the voter rolls.

Sure, only 30% of these groups vote at all. But when election results swing on majorities that can be counted in the hundreds, think Florida in 2000, Ohio in 2004, and Minnesota in 2008, they could make a decisive difference.

The polls we see reported daily are only taken of participants with landlines. So they may be undercounting both cell phone addicted, texting millennials, and immigrants. How many of your kids have landlines? My bet would be none.

Now, let me throw one big unknown out there. Thanks to the Supreme Court's Citizens United vs. the Federal Election Commission decision, the most recent election was the first to see unlimited anonymous corporate donations since the sixties. As a result, the number of election ads disclosing donors has fallen from 97% in 2006 to 32%.

California's proposition 23 was a perfect example of what this means. Billed as the 'Save California jobs bill,' the measure was placed on the ballot and promoted by $6 million in financing from Texas base energy giant Tesoro Petroleum (TSO). And what is the company's plan to create California jobs? Suspend the state's stringent environmental regulations so it could build a new oil refinery in nearby Martinez.

In every postwar election, the party in power has lost an average 27 House seats in the midterm elections. Obama knew this the day he walked into office. That is why the most radical parts of his agenda, like health care, were front end loaded. Expect to hear much about the President's surprise, Clintonesque move to the middle, which was in fact, planned two years ago.

Yes, I know, I should stick to my day job of calling every turn in the market. But sometimes, that profession and making political prognostications become one in the same. Knowing who the next president is going to be is an immensely valuable piece of market information, as the economic philosophies of the two parties are so radically different.

Do you think the White House situation room has a ladies room?

You Look Pretty Safe to Me

I managed to catch up with my friend, Harry Dent, the other day, the guru on all things demographic (click here for his). Regular readers of this letter are well aware of the enormous headwind impeding all assets classes caused by the retirement of 80 billion baby boomers, which started in earnest at the beginning of 2012. With only 65 million Gen Xer?s of the following generation to buy their assets, prices could only head southward, as they have for the past six years.

My question for Harry was ?When does the headwind turn into a tailwind?? That would indicate when demographics shift from a barrier to asset price appreciation to an accelerant. Of course, Harry had the answer on the tip of his tongue: 2023. That is the year when baby boomers cease to be a drag on the economy, safely ensconced in nursing homes, wondering if their diapers will get changed on time.

That will leave 65 million Gen Xer?s chased by 85 million millennials trying to buy their assets, triggering a 13-year boom. A labor shortage will ensue, driving up wages, boosting consumer spending, and igniting another real estate boom.

Globally, the picture is a little more complicated. Demographically, China and Europe will become dead weight from 2036, cutting into growth at home. The US will then experience a 12 year echo boom from 2045, taking growth rates back up. There are exceptions. Rapid population growth and rising standards of living are expected to keep India strong all the way to the late 2060?s.

The biggest question of the decade for investors will be when the markets start to discount the great economic boom starting in 2023. Look at the last cycle for some clues. While the first baby boomer hit retirement age on January 1, 2012, the financial markets started to roll over five years in advance, in 2007, while the less liquid real estate market topped out six years ahead of schedule, in 2006. Check out the Case-Shiller chart below to see that I?m right.

This timing suggests that you should buy your new home in 2017 and load your portfolio with high beta risky stocks in 2018. But that is only if history repeats itself. Until then, try not to go broke.

The Next New Round of Buyers?