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Friday, August 03, 2012

Brace for an era of crisis aftershocks

David Rosenberg is an economist and this week had an article published in the FT. 


I will give you the link but it is subscription only. 


I thought he expressed this financial reality really well. In his own words.


The baby boomers, who are now entering their mid-60s and the group that was at the epicentre of this tragic collapse in net worth, are still in the process of recalculating their ability to retire when they thought they could at the bubble highs. They have lowered their expectations of what their living standards will look like when they do stop work.


So the era of the aftershock is what we are in and what we will probably stay in for years to come.
That means consumer behaviour and patterns will undergo profound and enduring changes that will prove to be intensely disinflationary and foster a prolonged period of ultra-low interest rates, bond yields and expected returns in the public capital markets.


The question for you Mr, Mrs. Ms Marketer is have you thought about these aftershocks in your marketing plans. Do they get a mention? Are you hoping they will somehow dissipate or pass you by? If you did make any assumptions about the older market they need to be re-evaluated. Dick Stroud

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