I've studied this generation quite intensely, and they are a proud, hardworking, bunch. They take initiative, and the majority strongly believe in making the best for yourself and relying less on others to do your work for you.
According to Transamerica Center, "65% of Baby Boomers plan to work past age 65 or do not plan to retire, and 34% plan to continue working for enjoyment, including 18% who want to stay involved and 16% who enjoy what they do."
I appreciate that positive attitude, but according to a survey conducted by Insured Retirement Institute, "42% of Boomers had nothing saved for retirement. Of those who do have retirement savings, 38% have less than $100,000."
So that may be part of the reason for their continued employment.
Retirees without retirement savings could be in a heap of trouble, and so they're trading their investment accounts, hoping to make enough trading money to support themselves.
While this is a fun thought, the truth is it's like jumping into a shark tank to grab some of the shark's fish dinner. And from the shark's perspective, that's like a hot filet mignon jumping on its dinner plate to try to steal its Big Mac.
Enough with the analogies.
I'm extremely concerned about the 73% of Boomers who say they're "fairly knowledgeable" when it comes to investing... and about the 40% who turn to news outlets as their primary source of investment advice.
Do these good folks not realize what's happened to the financial media?
Sure, the media has always been used to manipulate people's thinking, and the financial media has always needed advertising money. But the media machine has become a monster since the arrival of the Internet, social media, and the ability to track behavior and compare the success of ad campaigns at the speed of light.
People barely realize how strong a grip the media industry has on us. That is, until they're driving down the highway and realize four out of five drivers have their faces buried in their cell phones!
And here's where this becomes a major threat to investors and traders alike...
With every major market up and down, those trading retirees are getting their butts handed to them in the form of losses created by emotional trading.
Using news outlets for financial advice is the absolute worst way to invest. So if you're one of the 40% of baby boomers who invests based on what the news anchors are reporting, consider this:
Why do they feel the need to include the sound of a rocket ship when a stock symbol is presented on the television screen?
Why do they play that motivating music between the interview with the CEO of the company whose stock is doing well and the analysts debating over whether it will gain 20% or 50%?
Why is it so fast paced?
Did you know they have people behind the scenes in the studio who are occasionally telling even the analysts and guest experts what to say? And whom to argue with in order to make it more exciting?
Did you know that Jim Cramer used to be legally obligated by contract to not discuss bearish investment plays (profiting from price declines in stocks) and could only yell and scream about stocks going higher?
(It's been about 11 years since I've been updated on that, so I don't know if that's still the case.)
Over the past couple of decades, I've been trading stocks for my own account, managing portfolios for others, writing and selling market analysis and trading ideas, and teaching classes on investing.
And what I say often runs counter to what the financial media says.
As a result, the financial media hates me (the feeling's mutual).
I won't say which network kicked me out for not abiding by their instructions to say how much I liked Coach Inc. (COH) when Tiffany & Co. (TIF) was clearly the better buy at the time.
I said what I truly believed. It's been a real problem for me in life, but it's also kept me true to myself.
What's important to understand is that the big, bad hedge fund managers and bankers are NOT the true enemy of the average Joe and Jane investor.
But the monstrous financial media is.
They're arguably more powerful than the government, and they're growing more powerful all the time... at the expense of trusting Baby Boomers.
And while you may think hedge funds and bankers view you as a pawn or patsy, it might interest you to know that they themselves are at the mercy of an even more powerful force.
Speaking of powerful forces...
On Thursday (June 25th) I'm showing investors how they can start using one of my favorite trading techniques.
It involves slowly siphoning cash out of a position... while staying in the position for further upside.
I promise you do not want to miss this.
So join me on Thursday for the "Great Re-Opening Summit".
See you there!
Trade Safely,
Chris Rowe
True Market Insiders
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