Entering text into the input field will update the search result below

America’s Demographic Time Bomb

Oct. 26, 2016 1:22 PM ETEEM5 Comments
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Editor's Note: If you'd like to receive the Diary of the Mad Hedge Fund Trader live in your inbox every day premarket and Trade Alerts which have averaged 35.18% annually since inception, learn more @madhedgefundtrader.com or take advantage of the Limited Time Special Offer for Seeking Alpha Readers @members.madhedgefundtrader.com/gtd3mo-sa/

You can never underestimate the importance of demographics in shaping long term investment trends, so I thought I'd pass on these two highly instructive maps.

The first shows a map of the world drawn in terms of the population of children, while the second illustrates the globe in terms of its 100 year olds.

Notice that China and India dominate the children's map. Kids turn into consumers in 20 years, stay healthy for a long time and power economic growth.

The US, Japan, and Europe shrink to a fraction of their actual size on the children's map, so economic growth is in a long term secular downtrend there.

There is more bad news for the developed world on the centenarian's map, which shows these countries ballooning in size to grotesque, unnatural proportions.

This means higher social security and medical costs, plunging productivity and falling GDP growth.

The bottom line is that you want to own equities and local currencies of emerging market countries, and avoid developed countries like the plague.

At least for the long term.

A Children

An Aged World Map
eem

Senior Citizens playing cards

Would You Rather Own Them? Children

Or Them?

The Diary of a Mad Hedge Fund Trader, published since 2008, has become a top performing trade mentoring and research service in the industry, averaging a 35.18% annual return since inception for subscribers.

Its fundamental and technical calls on stocks, bonds, foreign currencies, energy, commodities, and real estate have been spectacular. It is published by John Thomas, a 45-year market veteran, and one of the founders of the hedge fund industry.

John's elite team offers subscribers a daily premarket commentary research letter with deep background on all the trades and economic trends in play, a live biweekly global strategy webinar, and Trade Alerts texted instantaneously at market sweet spots. To learn more about our premium service, Global Trading Dispatch, please visit the Mad Hedge Fund Trader @madhedgefundtrader.com

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.