SECULAR TREND IMPACT BY BABY BOOMERS

A baby boomer is a person born during the 19 year post-World War II baby boom period between the years 1946 and 1964.  This generation of baby boomers began celebrating 65+ years during 2010, and over the next 15 years, as a group, they are the wealthiest, most active, and most physically fit generation.  They were also the generation that received peak levels of income, therefore they could reap the benefits of abundant levels of food, apparel, retirement programs, and sometimes even "midlife crisis" products.

It is important for investors to Identify secular trends, over a long-term time frame, usually at least 10 years, not just short-term trends, if they want to succeed.

Examples of secular trends include Bull and Bear Market Cycles, an aging population (which will tend to have different spending and savings habits than a younger population), the expansion of a particular technology (such as the Internet) and heavy reliance on certain commodities (like oil).

Consumer spending makes up over 70% of Gross Domestic Product (GDP) which is a broad measure of U.S. economic activity.  The aging generation of baby boomers has started to influence GDP spending habits and will impact the growth of specific sectors of GDP over the next 15 years.