Economic fun house

The Baby Boom generation has become a defining force in the U.S. economy, not just because of its size but because it holds an outsized share of household wealth. As Boomers retire, they are spending more and saving less, which can make consumer and labor data look weaker than they really are.

For investors, that shift supports durable demand in services, health care, travel, and senior housing. It also helps explain why parts of the housing market remain tight as many older owners stay put rather than trade down.

The main risk is misreading these generational changes as broad economic weakness. In reality, much of what looks like slowdown may reflect a wealthy cohort moving into retirement and reshaping where capital flows next.