Boomers are either preparing for their retirement or they are retiring and that is good for financial markets. Well first off, over the next ten years, the financial services sector is likely to do well. Demographers have been telling us this for years. A good example of this last year is the Dynamic Wealth Management fund. If the capital markets grow as predicted, companies in this sector can not help but make healthy profits.
Some analysts predict an almost fourfold increase in capital markets.
Think about the increase in management fees. If this trend continues a person may be better of buying a fund company's stock rather than buying their funds. If the markets have taught us anything over the last year it is the importance of diversity, value and balance. I'm not suggesting that anyone cash in their investments and put it all into the financial services sector. This is a sector that goes in and out of favor as Greenspan raises and lowers interest rates.