Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Alski who wrote (5844)	12/5/1998 10:14:00 AM
From: Thean	Read Replies (1) \| Respond to of 14427

All, what a great discussion about baby-boomers, retirement and money. It seems I'm a baby among most of you older hats, but the Harry Dent's chart is definitely very interesting. Just don't know how hard he had tried to "adjust" for inflation though, so I'm just a little bit curious. I think I'm hearing the following: - We have about 10 years max before the current wave of baby boomer earners peak out their earning. Therefore it is reasonable to expect some sort of a peak in money inflow by 2006-2008. Until then, the phenomenon we are currently witnessing about available money to invest will continue to pressure the capital market. The condition to keep this pressure on is of course no further melt-down in the world economy, but especially the US economy, to the point of prolonged, 4-5 year depression which reduces overall spending. I think the following strategies are reasonable to take advantage of this trend is: - On investing strategy front - have some strategic allocation in the buy and hold category on companies that will benefit from this baby boomer demographic. The pharmaceutical/drug companies immediately come to the top of the list. The next group will be the financial service sector, particularly the money management firms. - To deal with the constant struggle with over-valuation and steep money in-flow, one should allocate a certain portion of their investment asset to the active investing approach. Active Investing is an alternative to the traditionally passive investing style where one obtains research data, acts accordingly, and hope for a desirable outcome. With the advent of technology where one can access wide-ranging investment information and tools on the internet at the push of a few buttons, there arises a new opportunity to significantly improve one's investment outcome. I call this opportunity Active Investing. Active investing focuses the outcome of one's investment action on the basis of risk and reward, and it is 100% result-oriented. (I'm working a website that will discuss this topic in depth). More than ever, one has to take care of their own investment like their own career or business. At some point the income source will shift from the career/business base to the investment base. With that in mind, one should develop and manage their own investment with a much higher degree of sophistication than just making monthly contribution to their mutual funds and expect some "professionals" to manage their money. With a properly catered program for oneself, I strongly believe one can and should do much better.