In many parts of the world, the birthrate has consistently exceeded the local economy’s ability to absorb the population increase.  This typically results in lower standards of living and the potential for attempts at military solutions.  In some other parts of the world, the birthrate has been too low to sustain the regional economy and can, over time, lead to reductions in the standard of living.

Investors should recognize that either imbalance has significant implications for successful portfolio management.  Both too many people and not enough people, can lead to lower standards of living and reduced investment performance.  It should be noted that solutions to both issues are going to be difficult to find and will probably require enlightened political leadership.  It is also important to understand the role that religion may play.

All comments and suggestions are welcome.

Walter J. Kirchberger CFA