Friday, 27 January 2012

Stocks will go up!

According to Robert Trivers (The Folly of Fools, pp 133, 134 "Positivity in old age") "by age sixty (if not earlier), a striking bias sets in towards positive social perceptions and memories". "[Older people] simply do not attend to negaive information".

Baby Boomers hold a lot of wealth. Combine this wealth with a bias towards the positive and a blindness to the negative and it's quite likely that over the next decade, as more and more boomers enter this age, we shall see some impact on prices. Many still feel that they have not saved enough. What else are they to do but try to reap some profits? If enough are buying it will contribute to positive feedback - sending prices even higher. There certainly does not seem to be too many negatives hindering economic growth - energy seems quite safe for now.

Of course, i am approaching that age group, so maybe i am blind to the negatives.


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