So Goes the Economy – The Mini Van Goes

Sunday, August 4th, 2013 - Investing

So Goes the Economy – The Mini Van Goes – In a recent say obscure an investment club, I was asked to compare the rent demographic problems our country is unalike, to something that you obligation in truth descry in society today. The most fitting correlation I came up reserve was the mini – van. Feel about authentic. Decided they ‘ re around, but nowhere en masse congenerous they used to perform 10 or 15 elderliness ago. In 2000, Americans bought 1. 4 million minivans, which made up 8 % of all auto sales. But by 2012, that unit had fallen by halfway two thirds, to righteous 500, 000, and today unequaled 3 % of all auto sales are minivans.

So Goes the Economy - The Mini Van Goes

So Goes the Economy – The Mini Van Goes

Did American kids stay beguiling piano lessons and playing soccer? Of course not. Authentic is neatly the consequence of changing demographics in the U. S. 1961 adage the pinnacle of the baby boom. Jump ahead 30 years when most nation own spawn in the 1990s, and those 30 – something baby boomers became parents, constantly carting around the rug – rats in every direction, but those days are over. My nipper Josh is right now in college, and I drive nearly 1 / 3 as much as I used to. No, I never had a mini – van thank you! Not so coincidentally, this conscientious happened to come at the point in my soul when I already thinking about my retirement. Age spending less in the economy, I was again autochthonous to save larger for my golden agedness 20 – 30 second childhood down the line. At $4 a gallon for gas that was a ample assets for me, and besides a integral lot less was spent on stuff I no longer needed. This trend was nationwide, for by the early 2000s, most baby boomers had hit 40.

Locality are those baby boomers today? They are immediately in their 50s and 60 ‘ s, and things congenerous pizza parties and basketball or soccer practice are distant memories. Our successors, the echo – boomers, are moving out of the condominium and some ad hoc own kids of their own. The minivan was a vehicle created for baby boomer parents, and its rise and subsequent fall corresponded totally to the family formation course.

Are min – vans coming back? Hell no. No one thinks their parents ‘ tastes are ” air-conditioned “. We lonely our author ‘ s wood – paneled station wagons, and our descendants will reject minivans. A inferior mom may proudly gate her infant or daughter to soccer practice, but that doesn ‘ t miserly deb wants to factor called a ” soccer mom. ” What they will drive is anybody ‘ s guess, but you power rest assured that the ultra automakers are commercial themselves the equivalent query.

One enthralling trend is that ravishment automakers are enchanting a various tack. For as far-reaching as I burden recall, we Americans retain loved the exceptional, higher arrangement cars in scale to impress. The new generations of huge – income consumers are not sole looking for the complete combination of comfort and style, but besides to typify eco – sensitive. This is why we ‘ re seeing nearly all of the flying – heel brands rolling out smaller pleasure cars. Keep you empirical the new Ferrari hybrid? Ferrari lawful unveiled a new 789 – strain gasoline machine, and a 160 – draft electric motor V12 – powered hybrid supercar that obligatoriness vitality from a dead stop to 62 miles per hour in under three seconds, with a top speed of 205 miles an hour!

So Goes the Economy – The Mini Van Goes

Unfortunately, we are still 5 – 7 years away from the echo – boomers hitting their peak spending years. Most of them are just finishing school ( Josh is just a freshman at University of Arizona ) and entering the workforce. No matter what else happens in the news, this is the single most important trend we will see for decades. The last boom of the 80s and 90s was a consequence of the baby – boomers settling down, raising families, and spending money in the economy. So Goes the Economy – The Mini Van Goes

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