Interest

The oldest baby boomers started retiring in 2012 and about half have now retired. A mans wealth is highest in his ages 55 to 65. That is when he has his investments in stocks and means there is a large supply of capital for investment purposes. When he retires he moves that money into safe areas like Fed bonds and it is no longer available for investment. As the next half retire the available capital will continue to decrease and thus interest rates will rise regardless of what the Fed does. This is coming at time when the country will double its industrial base which will put more pressure on the need for capital and further increase interest rates. In ten years when all the boomers have retired things will settled down and the economy will expand rapidly. This is great news for young people coming into the market today.