Posted by: Bevan | September 14, 2012

The Reason for Deleveraging and the Secular Bear Market

We hear a lot about the secular bear market – I suppose it is real, although I suspect the last secular bull market might have been whatever the opposite of a Perfect Storm is.  That is, a special confluence of credit creation and the impact of the baby boomer generation saving for retirement.

Cycles can be dangerous but hold an irresistible allure.  The importance of demographics and life cycles to economic cycles is pretty hard to argue with from a logical standpoint.  The piece by Harry Dent entitled “A Decade of Volatility: Demographics, Debt, and Deflation” in John Mauldin’s latest letter is essential reading.  He also has a link to a video presentation of the material.  This is well worth a look – access it here

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