^^^Good info and advice, not only for the Baby Boomer generation but some good take-aways for all investors in today's whack economy.
"Less than 10 years ago, when the baby boomers' kids were coming into the labor force and the very skimpy roster of Depression babies was retiring, we had 10 new additions to the working-age cadre for each one new senior citizen. It goes to 10-to-1 in the opposite direction in 10 years. There will be 10 new senior citizens for each new working-age citizen. If that's not a political, economic and capital-markets game changer, I don't know what is. "
"If bonds are priced to give us, let's say, 2% to 4%, that means your balanced portfolio is likely to deliver 4%. Net of inflation and net of taxes, that's awfully close to zero real after-tax return."
"You still have a lot of people expecting 8% or 10% a year from stocks or even from balanced portfolios. That's naive."
"I think that's a crucial missing part of most investors' tool kits. Most investors think, "Emerging economies, my goodness, that's risky." Well they are cheaper than U.S. stocks, and the economies are ostensibly going to be the growth engine for the world economy in the coming 10 to 20 years. So doesn't that make them potentially less risky in terms of downside risk for the long-term investor?"
"Today, U.S. stocks aren't cheap. The Shiller P/E ratio--price relative to 10-year smoothed earnings--is north of 20 times earnings. That's on the rich side. So in the two Pimco funds, as of Jan. 31, we had essentially nothing in U.S. stocks."
"We had 35% of All Asset All Authority and 27% of All Asset in emerging markets, split roughly 70% bonds and 30% stocks. These economies offer higher yields and better debt coverage, paired with much richer growth opportunities than the U.S."