For the first time, people 65 and over, outnumber those age 5 and under. It is important to note that this data applies to the world as a whole. There are sharp differences between individual countries. For instance, Chinese and American birth rates are below replacement, while some other countries have very high birth rates and may end up with more children than their economies can support.
Investors should consider that, both too few children and too many, have the potential to lead to slower growth and lower standards of living. Moreover, the tremendous progress that has been made in extending life expectancies and improving survival rates are likely to strain healthcare systems and pension and retirement programs.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA
