DEFINITION of 'Baby Boomer Age Wave Theory '
An economic theory popularized by economist and writer Harry Dent, who concludes that the U.S. and other European markets will peak between 2008 and 2012. This is based on Dent's finding that a human's consumer spending habits peak by age 50; therefore, as the baby boomer generation reaches this age, the economy may be approaching a peak in consumer spending and in the markets.
BREAKING DOWN 'Baby Boomer Age Wave Theory '
Because American soldiers returned from WWII earlier than European soldiers, the theory concludes that markets in the U.S. will peak around 2008, while European markets will peak around 2012.
Assuming that the theory's predictions are accurate, some expect this to have wide-ranging implications. In addition, when baby boomers retire, this could cause spikes in unemployment and decreases in the housing market as aging baby boomers spend less. Others believe that the influx of immigration will help stave off these effects in the United States.
-
Generation X (Gen X)
Generation X, or Gen X, is the name given to the generation of ... -
Baby Bond
A baby bond is a fixed income security issued in small dollar ... -
Accelerator Theory
The accelerator theory is an economic theory whereby as demand ... -
Biased Expectations Theory
The biased expectations theory is a theory that the future value ... -
Peak
Peak refers to the pinnacle point of economic growth in a business ... -
Normal Retirement Age (NRA)
The normal retirement age (NRA) is the age at which people can ...
-
Retirement
5 Retirement Trends for 2016
Whether baby boomers are retired, semi-retired or starting second careers for fun, their choices will dominate American culture for a long time to come. -
Tech
Why Boomers And Millennials' Portfolios Are Incomparable
Discover the investment styles of baby boomers and millennials, and learn why the baby boomer portfolios are bigger and more diversified than the millennials. -
Insights
As Boomers Slow Down, Will the Economy Follow?
Many baby boomers are working past 65, yet as they retire, the effects could be profound. -
Personal Finance
Understanding Your Parents' Attitude Toward Retirement
How history may impact Baby Boomer attitudes toward financial planning and retirement. -
Financial Advisor
Why Boomers Aren't Saving Enough for Retirement
Baby Boomers still aren't saving enough for retirement. Here's what they can do to turn things around. -
Financial Advisor
How to Get Boomers & Millennials To Work Together
Baby boomers and millennials don't often see eye to eye, but getting these two generations to play nice is important for any company. -
Investing
Four Ways Boomers Benefit from Rising Rates
Here are four ways that Baby Boomers can take advantage of rising interest rates. -
Retirement
How Retirement Attitudes Of Baby-Boomers And Gen-Xers Differ
How is your level of retirement readiness affected by the generation category in which you fall? We look at some of the factors. -
Personal Finance
Reverse Mortgages: What Boomers Need to Consider
Baby Boomers need to weigh the risks of a reverse mortgage when considering it as a retirement tool. -
Personal Finance
Economic Effects Of Life After Military Service
The end of operations in Iraq and Afghanistan will have an impact on the economy. Discover how.
-
What does the American Dream mean to different generations?
Find out what has caused the American Dream to change radically from the Baby Boom generation to the members of Generation ... Read Answer >>