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After that point real fun begins. Around 2010 number retirees will begin to climb drastically. Those entering retirement will start to withdraw their retirement funds from stock market. As more and more individuals withdraw from market, Dow Jones will begin to drop. If a panic sets in, then we could see a drop in stock market unlike anything we have seen before. Things will really get crazy around 2016 as first of baby boomer generation is required by law to withdraw funds from their retirement accounts.
How is bottom falling out market going to help you make money on stock market? You will need to learn how to make money in a bad economy using techniques such as Short-selling and Put options. Did you know that more millionaires per capita were created during 1930’s then in any other time in history? It is possible to make a lot of money in a bad economy.
In summary, here are some very general tips to make money on stock market over coming decade: ·Buy stocks during years 2005-2009. Most blue chip stocks will increase in value. ·Buy Call Options. Large moves in a short period of time could lead to large profits ·Stocks to invest in include health, health services, retirement properties, and travel companies along with other things that cater to retirees. ·Be prepared for change in market direction around 2010-2012. Straddling (buying long and short) could be a good practice during this time. ·Short-sell and buy Put Options when market begins to fall around 2012-2015
We recommend you consult a financial advisor before taking any of these actions and always invest in your education. Good luck!
Cory operates a website to help educate people on how they can become financially free.