CHART OF THE DAY: This Worrying Demographic Trend Is Bad News For Consumer Spending

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Doug Short of Advisor Perspectives pointed us to this worrying trend.  The alarm is being sound by Harry Dent, who notes that the demographic of those in their peak spending years (age 46 to 50) has been on the decline since 2009.

Based on Census data, this trend should continue until 2022.  This is is bad news when you consider the fact that personal consumption expenditures account for around 70% of GDP.

According to Doug Short, Bloomberg’s recent interview with Harry Dent teased with “S&P 500 to Fall 30-50% in 2012.”  Dent argues that investors should get out of all risk assets and move into Treasury bills.