Echo

I have three children they are all in their late teens and early 20s now.  {BTW that's hard for me to believe they are now adults and I'm that old!}  Business Insider quoted Deutsche Bank's Torsten Slok yesterday who noted that "there are more 23 year olds today than any other age group".  These children of the baby-boomers are called echo boomers.  I've never heard that before but I won't argue with the term. These kids have now heard for years how hard the job market is going to be for them.  That may be true right as they come out of school or are in the early years of their careers, but in the long run demographics are likely on their side.  The chart above shows that as the baby-boomers retire or move higher up the economic food chain, somebody's going to need to fill their shoes.  All these under employed younger folks are going to be in the prime spot to fill that void in the coming years. Besides the obvious demographic implications, here's the other investment angles from the article:

"The fact that the echo-boomers are coming has implications for household formations and housing demand in coming years, inflows into 401(k) accounts, demand for risky assets (younger cohorts tend to put their retirement savings in stocks rather than bonds), the amount of student debt outstanding (there are more young people and more young people get an education), and as the baby-boomers retire echo-boomers will come in and take the jobs of the baby-boomers but at a lower pay."

Link:  Here Come America's 23 year olds

*Long three young adults.  Happy with that trade!