The world's developed areas are experiencing aging populations, declining birth rates, and resultant increases in such budgetary items as medical and old age security costs. Demographic analysis, the study of populations and spending patterns, alllows us to identify likely areas of higher than normal growth over the coming decades.
If we study human behavioural patterns in developed countries, and seek to understand how and when consumers spend money as they move through their life cycle stages, we can reliably predict future economic growth for any country by simply overlaying population growth patterns against that tapestry of historical knowledge. The past predicts the future and can guide us in our investment decisions.
We and other experts believe that investors can quite literally predict the future of economic cycles and financial markets by using demographic analysis.
This short video clip shows how populations are expected to develop in 6 key countries of the world from 1950 to the year 2050. We examine the US, Canada, Japan, China, India, and Costa Rica.