Demographics are the measurable features of an overall population such as age race, gender, income and educational levels, types of employment, home ownership and marital status. Demographic trends reveal how changing characteristics of a population may affect a business, society and public policy. For example, marketing companies use demographics to figure out how much of an area’s population is of retirement age, and public policy analysts may rely on demographic statistics to make decisions regarding health resources for an ageing population.

The Financial Impact of Aging Populations

A recent article published in the Financial Analysts Journal examines the relationship between demographics and both economic growth and capital market returns. The authors—Robert Arnott and Denis Chaves—use a new econometric technique to confirm a strong link between demographic trends and: excess (in excess of returns on domestic cash) stock market returns; excess bond market returns, and; real per capita gross domestic product (GDP). Ten year forecasts for GDP growth, bond market...
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Taiwan’s Asset Deflation Linked to Demographics

Much has been written about the link between Japan’s aging society and the asset deflation that the country has experienced over the past 22 years. There is a disconcerting correlation between the progression of Japan’s aging society and the relentless bout of deflation that began after the Nikkei peaked in 1989. A similar and equally distressing story exists in Taiwan. Taiwan is one of the most rapidly aging societies in the world, and similar to Japan, its population is shrinking...
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Demography and Deflation

Japan’s experience over the past 20 years provides solid support for those who believe that there is a causal link between demographics and...

New Health Care Expense Software is Taking Aim at a Retirement Planning Void

There is a strong case to be made for health care as the linchpin of retirement planning.  Virtually...

Healthcare Reform Provides Insurance in Name Only

After a tough couple of years for former Federal Reserve Chairman Alan Greenspan and in an era when the phrase affordable health insurance seems like an oxymoron, it is time to provide some credit where credit is due.

Chairman Greenspan hit the nail on the head in his recent book The Age of Turbulence.

The following are Greenspan’s comments regarding entitlement spending and the healthcare system:

The bottom line in the success of all retirement systems is the availability of real resources at retirement…The financial arrangements associated with retirement facilitate the diversion of resources that make possible the consumption of goods and services after retirement, but