The Greatest Stock Market Crash…hasn’t happened yet

The greatest stock market crash of all time…hasn’t happened yet.  Sure there have been lots of ups and downs over the years.  The Great Depression of 1929, Black Monday and Black Thursday…the Great Recession of 2008, but none of them will compare to the one that’s coming.  The craziest part about the greatest market crash of all time is it’s predictable.  I’d be lying if I said the day or month could be predicted, but its a time that will surely come.

The The U.S. Census Bureau defines the Baby Boomers as those born between January 1st, 1946 and December 31st, 1964.  This gigantic wave of people has influenced everything from the stock market, products, and culture.  Much of the ups and downs of the economy rides on where the baby boomers are in their life cycle.  For example, housing demand and prices skyrocketed in the 60’s through 80’s as the boomers were getting into their first homes.  College tuition has also jumped substantially as they’re paying for their children to attend Universities.  As the boomers got into their 40’s and 50’s, they began to scramble to save for retirement, sparking one of the most substantial growth streaks on wall street.  With the invention of the 401k and IRA, it gave boomers tax incentives to put their savings into the stock market.  From the 80’s to the early 2000’s the boomers were able to get amazing returns on stocks and bonds.  That run is over because they are no longer putting money in…they’re taking it out by the billions.

65 years from January 1st 1946 is January 1st, 2011.  In theory, the first wave of baby boomers retired in 2011.  While many retired, others realized they didn’t have enough in their 401k’s or IRA’s….especially after the Great Recession in 2008.  Between 2011 and 2029, all of the baby boomers will be retiring.  The same wave of money that fueled each of the booms will be coming out of the stock market, without the same amount of people putting money back in.  The demand for stocks and investments boomed along with the demographics of boomers, and it will decline as they pull their money out for retirement.  The bottom line is stocks cannot continue the same upward trends based solely on demographics.

The doubly scary part about the stock markets inability to keep growing is the mass exodus of money could leave the market if the retiring boomers fear their money is at risk.  Imagine the time when another “black monday” happens.  Retiring boomers will be terrified that everything they’ve saved and worked for could be wiped out.  They could easily pull their funds from the market and put them into tangible assets like gold, silver, or housing.  The stock market is built on consumer confidence…or lack thereof.  If seniors get panicked, the natural flow of money going out due to retirement could leave even quicker.

Knowing how volatile the stock market is should make anyone leery and cautious to put all their retirement there.  Because of government backing and the social dogma from “financial planners”, the stock market has become the most common place for retirement money, though it’s extremely susceptible to the fundamental human emotions of greed and fear.  It’s a retirement plan that is risky and subject to so many variables.

Preparing yourself against a stock market crash is smart, even if you don’t have money in the market.  When the next crash happens due to a declining stock market and panicked seniors, many people will lose most of their security and money for the future.  From young couples to seniors, starting with the basics like food storage, Survival Seed Kits, and precious metals is a necessity.  When times get bad, those that have prepared to weather the storm by investing in things that have intrinsic value will be saved.   Prepare as if the greatest crash of all time is coming…because it is.

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