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Charting The Lost Generation Of Investors

Tyler Durden's picture


There is a segment of the Baby Boomers that will never return to investing in equities because the last 12 years has produced a lack of returns with relentless volatility and scary headline news. BofAML's Mary Ann Bartels notes that equity holdings as a percentage of financial assets peaked in 2000 and have been declining ever since. This same behavior occurred last time the market traded sideways from 1966-1984 (16 years) and we clearly face the risk of more years of sideways trading to come as cumulative bond and equity flows show no sign of letting up at all.




Charts: BofAML


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Mon, 08/13/2012 - 15:19 | Link to Comment Ahmeexnal
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time to pump the water supply with thanatoxin and more fluoride. must get those sheeple in line.

Mon, 08/13/2012 - 15:24 | Link to Comment Dr Benway
Dr Benway's picture

They finally raped the golden goose to death, forcefed and skimmed it until it had enough.

Mon, 08/13/2012 - 15:27 | Link to Comment Ahmeexnal
Ahmeexnal's picture

It's like a serpent's egg. Through the thin membranes, you can clearly discern the already perfect reptile.

Mon, 08/13/2012 - 15:32 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

Has anyone ever told you that you look like Zack Gilifinakis?


I often get compared to Babs Streisand so no need to comment on who I look like!

Mon, 08/13/2012 - 15:40 | Link to Comment Pladizow
Pladizow's picture

Solution = HANG BANKERS!

Mon, 08/13/2012 - 18:17 | Link to Comment AldousHuxley
AldousHuxley's picture

money is in high yield.....



Mon, 08/13/2012 - 16:41 | Link to Comment silverserfer
silverserfer's picture

I thought it was Jim Morrison in his final days

Mon, 08/13/2012 - 15:22 | Link to Comment Aziz
Aziz's picture

Hah. Boomers had one twenty year bull run to get their money into and out of equities and book gains. Otherwise, they've been getting Corzined.

(Though perhaps not quite as Corzined as their children and Grandchildren are getting corzined by the trillions of public debt they're leaving).

Mon, 08/13/2012 - 15:29 | Link to Comment boogerbently
boogerbently's picture

I used the last 4 year "bull run" to book mine.

I believe, more to come.

Mon, 08/13/2012 - 15:35 | Link to Comment Unbezahlbar
Unbezahlbar's picture

boomers are more lost then most think. They are also the "forgotten generation" since both parties are smacking them down (ignoring them) and catering to special interest deep pockets--bankers, military, etc-- or large voter groups -immigrants, minorities, etc.

Both Barry and Zombie hope the Boomers don't go to the polls this year. Of course, I'm not sure it matters...


People have been Bushwhacked...then Obamafied and may now get Zombified. Is there any difference?

Mon, 08/13/2012 - 16:02 | Link to Comment disabledvet
disabledvet's picture

I agree with this. "wards of the State"...and we can all thank the Party System for convincing us that all that matters is that "cost free check in the mailbox" courtesy of Uncle Salami. "Never has so little been owed to so few by so many of us." do we get a do over or shall we just bow down to the Mighty Bailout Tycoons and shout "well play So Called Capitalists. WELL PLAYED!"

Tue, 08/14/2012 - 23:12 | Link to Comment Clockwork Orange
Clockwork Orange's picture

+100B, or, 1 monthly deficit for the non-set-it-and-forget-it wall street bullshit.

Can't wait to see Corzine either in shackles or swinging high

Mon, 08/13/2012 - 15:21 | Link to Comment john_connor
john_connor's picture

No one listens to the blaring buy sirens anymore since their 4% dividend can be wiped out in a few nanoseconds of HFT.

Mon, 08/13/2012 - 15:32 | Link to Comment Dr Benway
Dr Benway's picture

In response to lacking investor confidence in the market, they caused a market ramp. This is like a cardshark convincing you of his honesty by dealing you five aces. Investors weren't fooled and left the table.

Mon, 08/13/2012 - 15:22 | Link to Comment Hype Alert
Hype Alert's picture

Complacency?  The VIX broke below 14 today!  On a down day..

Mon, 08/13/2012 - 15:36 | Link to Comment Dr. Engali
Dr. Engali's picture

It's all good, stocks are only allowed to go up anyway. Ben has our back. Just buy! Buy! Buy the fucking dip!

Mon, 08/13/2012 - 15:23 | Link to Comment Cdad
Cdad's picture

Why would fund flows out of equities let up?  The equity market is priced to random Bernanke levitation...and everyone knows it.  The economy will not provide lift for them.  The folks that run the banks, long only funds, and exchanges have revealed an entirely broken market system that has zero forward looking ability or legal integrity...and all the while "investors" [if there are any left] are suffering the inflation of bad monetary policy and the dismal employment prospects of insane fiscal policy.

And today, as if to prove the point, the SPY is levitating on less volume than was seen during last Christmas Eve's half session.

The whole thing is a joke.


Mon, 08/13/2012 - 15:24 | Link to Comment govttrader
govttrader's picture

Time to buy bonds again...check it out....

Mon, 08/13/2012 - 15:53 | Link to Comment Meesohaawnee
Meesohaawnee's picture

Tyler........... i have so had it with this post. Time to go to kiddy land like yahoo finance with this.. go away

Mon, 08/13/2012 - 15:26 | Link to Comment Dr. Engali
Dr. Engali's picture

Wait until those bond I mean investments blow up. The boomers will really be shitting their pants then. 

Mon, 08/13/2012 - 15:34 | Link to Comment boogerbently
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There's a reason bonds offer those "too good to be true" interest rates.

See EU....and how often the term, "bondholder haircuts" comes up.

Mon, 08/13/2012 - 15:37 | Link to Comment Unbezahlbar
Unbezahlbar's picture

I hear you can still grab some of them Poway Bonds:


Where Borrowing $105 Million Will Cost $1 Billion: Poway Schools (California style)

Mon, 08/13/2012 - 15:50 | Link to Comment Cruel Aid
Cruel Aid's picture

I love that story. Turn on the light and get some people exposed.

I'm sure they are not the only munis who have thought of this.

Brilliant friggin idiot crooks.

Mon, 08/13/2012 - 16:15 | Link to Comment boogerbently
boogerbently's picture

Funny you would pick San Diego. I moved here from there 2 years ago.

That's my point about bonds, they can "promise" to pay you a TRILLION$$$ for borrowing a million, but who is going to believe they'll get that???

Oh, wait, Gross does!


Mon, 08/13/2012 - 16:20 | Link to Comment boogerbently
boogerbently's picture

....and they feel they HAVE to do it...."IT'S FOR THE KIDS!"

If they'd ever look up from snooki or kim k. long enough, they'd realize all that money goes to the public pensions.

Teachers, police, firemen......

They "overpromised", now they're going to have to "under deliver."

Mon, 08/13/2012 - 15:26 | Link to Comment Yen Cross
Yen Cross's picture

 Man that cumulative flow chart is some scary shit!  Nasty un-natural divergence... Reeks of Fed. Manipulation!

Mon, 08/13/2012 - 15:31 | Link to Comment Cdad
Cdad's picture

That top chart perfectly reveals the nature of HFT and how it is used to mark things up after they have been sold into oblivion.  It reveals a system that delivers ZERO price a nonmarket.  Who would take market risk in a market that isn't a market?

Thanks to Ben Bernanke for the wasteland.

Mon, 08/13/2012 - 15:39 | Link to Comment Dr Benway
Dr Benway's picture

Cdad, the more paranoid contingent would contend it is a plan. Investors leave the market, companies buy up each other to prop up prices, end result is a clogging web of companies fully owning everything and themselves, governed by banks.

Mon, 08/13/2012 - 15:31 | Link to Comment mrktwtch2
mrktwtch2's picture

cant blame them..when the market crashed in 08 those who rode out the tech wreck in 2000 said fool me once shame on you fool me twice shame on me!!

Mon, 08/13/2012 - 17:47 | Link to Comment toady
toady's picture

My grandma got reemed when her broker put her money into Iraqi fertilizer just before gulf war I, WITHOUT HER KNOWLEDGE OR CONSENT. My mom lost a lot of money on dot com because her broker kept pushing it and she figured he must know what he's doing...

The markets are a scam to shear sheep. I'll just learn the lesson and stay out.

Mon, 08/13/2012 - 15:34 | Link to Comment buzzsaw99
buzzsaw99's picture

individuals who aren't out of the stock market yet are counting the days until they can. for the big pension funds that remain i made up a little song:


Have you heard about the calpers loser
Beaten by the grifter execs every time
Have you heard about the fidelity loser
They are losers, but they still keep on tryin’

Unlucky in investing, least that’s what they say
They lost their ethics and gambled their funds away
They keep on suing ’til there’s nothing left
Bought the garbage and lost, now the pensioners have to pay the cost.

Have you heard about the calpers loser
Beaten by the grifter execs every time
Have you heard about the fidelity loser
They are losers, but they still keep on tryin’

“It’s okay”, they smile and say
There’s another ipo coming out today,
They don’t show what goes on inside their momo heads,
but if you watch very close you’ll see it’s all piigs dead

Sit down, look at yourself clear
Don’t you want to work for the squid next year
Someday some banker’s gonna see inside your portfolio
You have to face up, you gotta buy that junk cornholio

Have you heard about the calpers loser
Beaten by the grifter execs every time
Have you heard about the fidelity loser
They are losers, but they still keep on tryin’



Mon, 08/13/2012 - 15:33 | Link to Comment NEOSERF
NEOSERF's picture

Whoever counts those bank bankruptcies every Friday should start a municipal version...those who get out first get out best...

Mon, 08/13/2012 - 15:38 | Link to Comment Black Forest
Black Forest's picture

Time to buy selected equity, or not to sell it, if I interpret those charts correctly.

Mon, 08/13/2012 - 15:35 | Link to Comment Dareconomics
Dareconomics's picture

The peaks in the charts occurred during the trough of bear markets. That makes sense, because a low market valuation means that the market is a smaller piece of net wealth. The current number is terrifying. The markets are close to multi-year highs, but this is still not enough to raise the market as a share of wealth.

People are abandoing the stock market in droves.

Mon, 08/13/2012 - 15:35 | Link to Comment fonzannoon
fonzannoon's picture

We need more articles about the boomers. I need updates by the minute. Can anyone please email where I can donate directly into their pension funds? The 11k I have for my daughters college fund is never going to get me anywhere. Perhaps I can contribute directly to the soon to be retiring college professor who needs to replace his 200k salary even though his/her TA does all the work?

Any info from anyone on here would be greatly appreciated....

Mon, 08/13/2012 - 15:35 | Link to Comment TideFighter
TideFighter's picture

The blood trail of a shot deer. But, the deer keeps running. Makes no sense to a hunter's eye. 

Mon, 08/13/2012 - 15:41 | Link to Comment Dr. Engali
Dr. Engali's picture

Been there before.

Mon, 08/13/2012 - 17:25 | Link to Comment kornholio
kornholio's picture

thats the damn truth

Mon, 08/13/2012 - 15:51 | Link to Comment Shizzmoney
Shizzmoney's picture

After these greedy assholes steal everything from the Boomers (at their consent), it's going to be funny to see the Investment Houses in 15-20 years go belly up when the Millenials have a) no money to "invest" (i.e. speculate) with and b) have no interest of doing so with Wall Street.

If I had capital and was interested in building a future, I'd just buy gold bullion and let that fucker sit in a vault.  Best and most concrete investment you can buy.

Mon, 08/13/2012 - 15:55 | Link to Comment ebworthen
ebworthen's picture

Asshole on CNBC talking about how there are great values in "small-mid cap growth equities" and it's a great time to buy (of course he has some for you!).

Fuck you people.  You will take my money, skim your fee, then the companies in the fund will blow it on parties and conferences, bonuses, or steal it outright or through abject mismanagement.  And, if you happen to make 7% a year after fees and 10 years of nothing, the gubbermint will tax your gains on your already taxed savings.

It is clear to anyone with half a brain that equities are a scam and the markets a slot machine.

By the time the government defaults on it's bonds equities will already be in the toilet, so why would people throw money into the "777's" machine?

Would be nice if there were data to quantify how much money in equities has gone to Silver and Gold, though Gold going from $850 to $1,600 and Silver from $15 to $28 (per ounce) since 2008 give a pretty good idea.


Mon, 08/13/2012 - 16:02 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

Young people aren't coming into the market because they have no job, no money and a mountain of debt. The real estate market will suffer from the same problem. As the boomers phase out there is nowhere to go but down.

Mon, 08/13/2012 - 16:05 | Link to Comment reader2010
reader2010's picture

The mantra had been BTFD.

Mon, 08/13/2012 - 16:05 | Link to Comment Cranios
Cranios's picture

I'm a baby boomer and have been invested the past 12 years (and before) and my retirement assets are at a higher number than ever before. If some Boomers are hurting, it's because they either chickened out at the wrong time or haven't paid attention to their investments or invested too conservatively. Or maybe they never saved. That is their fault, not The Man's fault. Investments need to be managed just as any other thing you own needs to be managed, why do people think that's not the case? Oh that's right, they're Democrats!

Mon, 08/13/2012 - 16:10 | Link to Comment jomama
jomama's picture

you had me until that moronic partisan bullshit. 

acting as if either shit sandwich is better than the other.

Mon, 08/13/2012 - 16:17 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

Yeah, I split up my investments between madoff and corzine and have done exceedingly well. Sure it's a but pricey, the management fees, but I have looked in a while and am sure it's higher.

Mon, 08/13/2012 - 16:40 | Link to Comment ebworthen
ebworthen's picture


Have you tried to take any out yet?

Think it will be there or you will be able to get it when you need it?

p.s. I - see boribori's post below.

p.s. II - ^5 on the avatar, and Yukon Cornelius says hello.

Mon, 08/13/2012 - 16:05 | Link to Comment boribori
boribori's picture

Let's face it - I'm a 30-yo finance professional and I am fucked. Rates are at zero, my inflation is at 5% pa, opportunities to build my asset base are limited. Older generation ate my lunch and I will have to work until I'm 75 to retire (if I don't drop dead at work before that). The credit cycle has finished and the global economy is at it's potential path (excluding credit expansion) of 0.5% pa. I am better off enjoying my life for the next 15 years that working hard.

Mon, 08/13/2012 - 16:19 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

"I am better off enjoying my life for the next 15 years that working hard."

I made this decision recently. There is no reason to break yourself trying to build wealth that can be snatched from you anyway. All I'm looking for is some peace, comfort, and a 40 hour workweek. Oh, and lots of booze.

Mon, 08/13/2012 - 16:37 | Link to Comment Let The Wurlitz...
Let The Wurlitzer Play's picture

You need to get a job being one of those wine tasting people (solmmelier).  You can probobly get Barry to pay for your training.


Mon, 08/13/2012 - 17:35 | Link to Comment aerojet
aerojet's picture

Enjoy your stomach cancer booze boy!  I hope that 40hr job comes with good health insurance or you're effed.  I guess you could always buy a cheap revolver as a back-up plan for your plan.

Mon, 08/13/2012 - 16:27 | Link to Comment Pancho Villa
Pancho Villa's picture

Hey, you are 30 years old! What I wouldn't give to be 30 again.

Stocks and bonds are overpriced right now because of high demand from the boomers. But in a decade or so the boomers will sell their holdings and there will probably be some real bargains then.

Until then, why not take advantage of record low interest rates to buy a house? House prices may still drop a bit, but you will be paying your loan in Bernanke-bucks which are probably going to be printed in huge quantities in the not-so-distant future.

Tue, 08/14/2012 - 07:13 | Link to Comment boribori
boribori's picture

 thanks for suggestion though. How about I focus on this one: ?

Mon, 08/13/2012 - 17:33 | Link to Comment aerojet
aerojet's picture

I'm pretty sure that real estate has more downside given that all the Boomers are going to die off eventually and not need housing and there aren't enough people with enough money to buy all the houses that will be available.  I guess we'll let in more Somalis and Mexicans and the government can front the money.  Also, figure in the maintenance costs on these houses--I have a Boomer cast-off of my own and although it is in good shape compared to the dozens of others I looked at, it still needs about $20K in repairs and improvements.

Mon, 08/13/2012 - 16:27 | Link to Comment youngman
youngman's picture

5 year CD´s paying for...and the stocksI watch...the volumes were down to one third of normal....that is whoever makes money on the churn.....commissions etc....they are not.......

Mon, 08/13/2012 - 17:01 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Value is dead.  Long live Value.

Mon, 08/13/2012 - 17:10 | Link to Comment patb
patb's picture

Bond prices are in a massive bubble.


When bond prices rise, these bond funds will collapse

Mon, 08/13/2012 - 17:40 | Link to Comment barroter
barroter's picture

A Boommer here. I sit back and watch and regard pretty much everything in the marketplace as a fraud.  Be it the auto mechanic or Wall St, both are figuring out ways to dig deeper into my pocket.  If fact, I think the only way the market can make any money is via fraud.  They try to do their best to gain my blew it royally.

Dividend stocks can blow up or, in the case of "safe" utilities like Chesapeake Gas, transparency is a joke. CD rates bite.  I find other investment vehicles so loaded with legalese that it MUST be in the interests of the issuer.

My newest way to keep my principal is NOT to engage (spend money) the market whenever I can. 

To those who would like to sell me something. You Lose. I could not give a rat's ass about your commission.

Mon, 08/13/2012 - 18:00 | Link to Comment MX_DOGG
MX_DOGG's picture

Boomers deserve to suffer. They have relentlessly voted for bigger and bigger government since the 1940's. 

Mon, 08/13/2012 - 22:23 | Link to Comment Vendetta
Vendetta's picture

No one voted for bigger government, the government wanted to be bigger and when they fuck the people over royally by catering to financial interests such as in the great depression wiping out millions of peoples' savings, the government whips out programs like social security to try to 'make up' or when JFK tried to take the power of currency issuance from the bankers, they blew his brains out for it and government tries to make amends by creating such things as LBJ's "Great Society" programs.  The roman empire grew and grew from military conquests till they debased their currency to the point the empire disintegrated then came the dark ages.  The british empire grew and grew while silver became increasingly demonetized (destroyed India savers by the millions) and at the end of WWII, the US dollar became the reserve currency and the pattern continued.  Voting has little to do with government lust for power and expanse of itself ... just like a banker in a TBTF.

Mon, 08/13/2012 - 19:44 | Link to Comment shovelhead
shovelhead's picture

^^^^ Thermonuclear face-palm post alert ! ^^^^

Mon, 08/13/2012 - 21:21 | Link to Comment TrainWreck1
TrainWreck1's picture

Anything that supports Wall Street is a non-starter.

Always better investments elsewhere.

Wall Street has the worst house odds going.


Tue, 08/14/2012 - 14:17 | Link to Comment ohreally
ohreally's picture

What happens if we add back in the gains stolen by the financial industry and certain notorious managers?  Would it still be chalked up as a lost generation for investors?  Is there a correlation to the pillaging of investors and the poor performance?

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