Pinoy New Era Of Investment

Generation Pattern ( Forecasting tools #1)

The Generation Pattern tells us when, where and how an innovative generation will impact the economy.”

Every 80 years, an innovative generation is born that revolutionizes technology, introduces fresh social trends and builds entirely new industries from the ground up. The Generation Pattern is a forecasting tool I use to gain a macro view of these innovators as they move through the stages of life. Why? This generation fundamentally and predictably impacts every aspect of the economy from inflation to housing starts to stock prices.

A Generation Pattern begins with an identifiable surge in the birth index that announces a new generation of innovators. For example, our current Generation Pattern the era of the baby boomers illustrated below began when the birth index peaked in the early 1950s. As this new generation ages, it moves through three distinct stages, the Innovation Pattern, the Spending Pattern, and the Power Pattern.

“As this generation comes of age, we see an influx of radical new business practices, products, services and technology.”

“The economy booms as this generation reaches its peak spending years.”

“As these visionaries age and become the new power elite, they greatly extend the impact of their innovations.”

The Power Pattern peaks when these innovators enter their 50s and 60s. As they assume positions of corporate power en masse, they stimulate a revolution in business practices that truly exploits the advantages of the new technologies. For example, what the assembly line production revolution was to the Henry Ford generation, the Internet marketing revolution is to the baby boom generation today.

The generation that follows has its innovators, but overall such individuals tend to improve and extend the revolutionary changes introduced by their predecessors. Under their guidance the economy matures and stabilizes, preparing the way for the next 80-year cycle.