Fri, 1 May 2020
Returning guest, Harry Dent, discusses the economy, company buybacks, and quantitative easing. Take a deeper look into the economic influence of each generation with their peak earning power, and peak spending trends.
We are all searching for information on what to expect in uncertain times. Look at patterns Harry has analyzed to predict what’s to come. Jason discusses the roommate component as a part of understanding shadow demand for housing.
Harry Dent shares his thoughts on where Baby Boomers and Millennials will go next, be that downsizing or repurposing the McMansions. What differences between the two generations have led to peak earning and peak spending trends, and how will they affect the housing market?
[1:30] Harry Dent, Demographer
[2:30] Puerto Rico, better weather, lower cost and better tax benefits
[3:53] Famous for predictions on all aspects of the economy
[3:50 ] QE Quantitative easing
[8:00] What is the age of someone’s peak earning power and peak spending?
[8:50] “Quantitative easing is not putting money into the banks system and lending, it is literally buying financial assets like bonds, which puts more money into the pool that’s actually chasing financial assets, and that drives up financial assets.” - Dent
[13:55] Company stocks are going up because of shrinking the number of shares, rather than growing the economy
[13:25] You say the economy is fake?
[14:25] Governments always stimulate the economy
[17:55] Are company stock buybacks really that bad?
[18:00] The stock market is the best leading indicator of the economy
[23:00] After 1995, things start to get out of whack in relation to GDP
[27:10] Every 90 years, like a clock, we see a bigger bubble and a crash
[31:00] What are the biggest bubbles now, Apple, Google, Amazon, tech companies
[34:00] China’s workforce peaked in 2011 and has been declining ever since
[38:40] Harry explains the repo-market
[40:00] Harry Dent, "The baby boomers have sold their homes and joined the renters"
[43:00] In general, are the millennials in a good place or a bad place?
[46:00] Harry, “I like the high quality, the ten and thirty-year U.S. Treasury Bonds”
[50:00] What’s to come of the Millenials and the McMansions?
[52:00] If we don’t rebalance this debt, and go through what you always go through after a debt bubble, we may end up like Japan
[56:00] Jason, "Financial assets like the wall street economy vs real assets like the main street economy are far riskier"