Harvard Trained Economist: If You’re In Any Of These Stocks Then GET OUT NOW
November 14, 2017
Harry Dent on TEORAWKI (The End Of Retail As We Know It). Harry shows how it’s getting worse by the day. Here’s more…
by Harry Dent of Economy and Markets
Is this the End of American Shopping Malls?
Sheets of newspaper scratch along the dusty linoleum floor as the wind beats them into the remnants of a bench… or through the open glass door and into the darkened, empty space beyond.
Escalators haven’t run in decades. The air itself looks dusty.
Could this really be the future of the American mall?
Well… yes! It’s bad and it’s going to get worse, but I’m writing today to tell you it was totally predictable!
In fact, just like we forecast that Harley Davidson would suffer, so too did we forecast that retail stores would take it in the nuts as the Baby Boomers moved along their predictable spending wave!
Yes, the retail, brick-and-mortar, industry is suffering because there are too many stores… because online shopping is growing exponentially… and because shoppers are “moving toward experience…”
Investors still believe in the Trump magic wand of lower taxes and regulations that first, may not happen, and second will not be as big an impact as economists think because businesses are already over-expanded from the bubble boom and we are back at full employment with lower workforce growth ahead. Learn more about the upcoming bubble burst here.
But there’s something so much bigger than all of these things going on, and everyone seems to be missing it!
Even the mainstream media is missing what’s right in front of their noses!
Two words: Baby Boomers.
All of these retail store closings and all of these bankruptcies were all baked into the cake when the massive Baby Boom generation peaked in its spending in late 2007.
Affluent households spend a lot on their kids and college education, until they’re about 51 years old, after which we see a dramatic drop-off in spending. For the U.S. Baby Boomer generation, this started in 2012 (on average).
Spending on apparel and related services, like dry cleaning, peaks into age 47, which means retailers would have begun feeling the pinch back in 2008.
And if you look at the numbers below, from the annual Consumer Expenditures Survey, that’s exactly when they started to struggle…
Source: Harvard Trained Economist: If You’re In Any Of These Stocks Then GET OUT NOW