Today is Tuesday, April 5th 2011 and we saw the Dow and S&P make new highs in today’s session only to fall back in the last couple of hours. The Dow was leading the way, then came the S&P index. After a slight new high, the cracks started  to show up just before 1 p.m. New York. Pretty much straight down from there, as we ended up inside the middle of the days trading range.

I have not posted for the past few sessions as some may have noticed. I have been sick and still trying to keep up with obligations, a bit of a tall task. I was still able to trade, as this cold I have has been lingering which would have meant no trading for over a week. I took my chances and have been doing about the same as when not sick, which is good. Many times my patients and judgment can get the better of me, which does remind me, I did take a few very bad trades that came out of nowhere. I have the last three days below for those who want to see and will continue with something I started to talk about last week that I did not finish.          Today’s trades here on top.

Monday’s Trades below;

Friday’s Trades below;

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Now that that is done, I would like to continue with where I left off, which I will now have to remember. I was talking about “Age Demographic’s” and how that effects the direction of the Stock Market, the economy and will bring on a “massive economic shift in 2012″.

This is something I read in 2004 and was impressed with, so I saved it. I never forgot the power of this information and what it means for the future. The information stated that for the next 8 years we would see growth and an expanding economy, but that was going to change in a big way in 2012, as a major age demographic’s shift was going to take place.

The purchasing power of the 45 to 54 year old’s drives the economy and markets. It has been this way graphed and recorded since 1920 and likely to continue its track record. I am looking at a graph of the age group as people move into it and out of it, a net change is recorded and graphed. That change is almost totally identical to the economy and stock market.

So, what happens in 2012?  If you don’t want to know, stop reading here and go do something else, because it is not pretty. Last chance…………  going, going,  OK;   here it is.

We are looking at an unprecedented drop like we have never seen before and it lasts a long time. The age demographic shift does not turn back up until 2025 and posts 13 negative years of stock market growth. WOW. That sounds like the end and it could be financially for some who have been trained into buy and hold. There is a lot more in this article, 4 pages of details backed up with data points and a historical track record going back to 1920. It is impressive, that is why I saved it back then and reporting about it here today 7 years later, as it becomes more relevant with 2012 looming.

These facts don’t take into account anything else other than age demographic’s. With the current situation as the country is in, bulging deficits and overall debit in all categories, across the board, fed, state, local, business, private, and so on, what is it going to look like as this things get rolling along.

Currently, the government has said it may have to shut down this Friday April 8th with no budget agreed on in Washington. Stuff like this is only gong to intensify all of which has nothing to do with the shift, but will only exacerbate it. This time I think there is better than a 50% chance that it will.

I told you above, you could have stopped reading. I wasn’t kidding. This kind of thing can become scary, but I would say, don’t let your fear take over. How are you going to capitalize on it and come out ahead of the game. There are things you can do to protect your wealth and you should start looking into it. Paper money, is going to be inflated and since the the debt issue is so huge, they don’t want to raise rates like they did back in the early eighties. That brought Gold and Silver off there perch. This time, they can hardly raise rates or want to, for various reasons.

The obvious is the borrow rates would go up and thus their true cost for servicing the debt. This is an indirect way of taking money right out of the peoples pockets.  It has been said, by some reliable sources that  70% of the bond market auction is bought up by the Fed. This is the Quantitative easing that they said would help keep rates low and stimulate the economy. It is going to do a lot more than that. Investors are loosing faith in the process and just staying away.

So much more I could say, but the last thing I will say is, if you want me to email you this 4 page report, I will. You will find it a very interesting read and it may help motivate you to do something about it, which is a good thing how ever you look at it. This shift is not going to go away, and it is not different this time. The baby boomers are retiring in massive numbers to boot. Well, if you would like me to send you the report, I will. I won’t be hounding you about signing up for anything, but if you have questions, I would be glad to answer what I can.

The last question I have you.  Will you be ready for this “massive economic shift in 2012″?  If you not, it is coming, ready or not.

Best to all my readers, Vince