Interesting theory. I buy one part, but not the other. I agree that the consuming boom of the baby boom generation is of great impact. That what boomers are consuming makes markets, and as they age, their consumption shifts. May be a bull market in walkers and depends diapers a few years from now. The argument that the prime age, in this case 45 to 54, is the driver of the markets, and as the proportion in this sweet spot drops off as boomers age, that the markets have to come down proportionally, seems a sound argument. However, I do believe that baby boomers cary out wealth transfer to their kids, and want to avoid taxes by giving property and cash to kids before they die. This would mitigate the effects. Also, China's rise in standard of living may offset reduced consumer spending. Other developing nations will continue to increase demand.

So the part I don't buy is cheap oil. We are past peak oil, and as much as I hope demand destruction and conservation will reduce the crisis, I think non-US demand will gobble up much of any over-supply. Also, a weak US dollar will keep the price of oil, in US dollars, relatively high. So I think that $100 cheap US dollars buying a barrel of oil in a few years will be as cheap as it can get. But the Canadian Dollare will be worht more than the US dollar, and a Euro will buy $2 us. And Gold will be well over $1500 or more.

So to get ready, a prudent person would move out of an major city, live close to work, have a bicicle and a garden, and be a member of a small community that has some local food production possibilities. Stock up on a few basics, but no survivalist here. Semi-off-Grid, with a nice 5 acres or so / or a stake in a good co-housing community paid for by gold profits is my plan.

The many trips to exoitic locations around the world, once a rite of passage for North American youths/students will be a thing of the past. My children are more likely to take their travels in North America.

And as the tourism industry in canada wanes, there will be great deals to travel to the US. So there may be some investing opportunities in resort/holiday type things in the US.

One last thing. I'll hire Martha Stewart to clean my house.

SKELEG