This free market research sample may be a little unique. There are many sites out there with loads of data available. Some are general in nature, but many are quite specific and focused on a particular business venture or direction. In this page, I'll be presenting some numbers about a segment of our economy and the growth within that section.
This information came from Harry Dent. If you read "The Roaring 2000's", you know that his book although written before the large growth spurt in America began, none the less accurately predicted that growth. At the time, the critics howled with cynicism. After all, how could this guy be predicting record economic explosion when the economy was circling the drain?
Simply because he understood demographics and trends. And he studied history. So here is his take on some of the numbers in this market. He begins with the rise of car sales. Sales are moving up to a point not seen since early 2008. To me that would seem to be a good thing. And it is good.
But it is also very predictable. The biggest block of baby boomers were born around 1961. Mr. Dent reports that the average consumer spending cycle goes up beginning at around age 18. That makes sense. That is a typical age for a kid to get a job or start college. That trend continues upward till around age 53.
The climb is very steep through age 39. Family costs, new houses, appliances etc. all add into the consumer goods purchases. On average the final very big durable goods purchase takes place at age 46. That would be the last big house. Spending then plateaus till around that age 53 mark. This is a common time to buy a new car. The last child is usually moved out and there may be some more money available. And the parent may just want a nice ride.
If you take that 1961 very large boomer birth year and then add 53 to it, you get 2014. So it is very predictable that car sales should be up now and continue into 2014. Housing is the first major level to plateau around age 46. New cars are the last to reach the top of the graph. Check out the graph below.
Then the consumer spending drops off very quickly after age 53 in most cases. The part of this information that is most concerning is that even with reliable data being validated, and with massive amounts of federal "stimulus", coupled with ever growing debt, our economy is plodding along at 2% growth. Or less.
If the largest age demographic moving through the economy is reaching the height of their heavy spending, is one of the elephants in the room becoming a little more visible?
Maybe we need to remove some of the government heavy hand on small business and allow the free market economy to do what it does best. Build things that people need all over the world. Build them very well and then sell them. It is a shrinking world. We need to study the free market research sample numbers and respond accordingly.