Home|About Us|Our Services|News|Resources|Disclosures|Client Login|Contact Us

How Worldwide Demographics Affect Your Portfolio

While China, Japan, Germany, and other major economies are grappling with a decline in their working-age population in the decades ahead, the U.S. working-age population is expected to grow. Since growth in the size of the labor force is one of the two determinants in economic growth, it's a key fundamental factor that will shape the future of financial markets. This is a key fundamental affecting long-term personal financial plans. It's important and it has practical consequences on retirement portfolios.

With the working age population stalling, Europe's economic growth is sluggish. To stimulate the economy, Germany's central bank has pushed lending rates into negative territory, which is unprecedented. Germany is the world's second largest issuer of government-backed bonds and its action has depressed interest rates on U.S. Treasury Bonds. This demographic trend is set to shape growth rates in major economies across the globe for the decades ahead, which means low-rate conditions in the U.S. could persist for years. No one can predict the next move in the stock market, but demographics are fairly stable and predictable. As a result, it's wise to be sure your strategic investment plan — specially, your portfolio's allocations to bonds — is in sync with this key fundamental. Please call us with any questions.


This article was written by a veteran financial journalist. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results.


Email this article to a friend


This article was written by a professional financial journalist for Neiman & Associates Financial Services, LLC and is not intended as legal or investment advice.

©2020 Advisor Products Inc. All Rights Reserved.
 
Printer Friendly Version
Index
Business Owner Alert: Main Street Lending Program Offers Covid Aid
Financial And Tax Planning For The Long Run
A Constellation Of Facts Squarely Aligns With 2020 Roth IRA Conversions
Covid-19 Tax Break Suspends Required Minimum Distributions
PPP Update For Business Owners
Business Owner Alert: Covid-19 Retirement Loans
Coronavirus Tax-Breaks For Individuals; Details Emerge From IRS
Coronavirus Tax Planning Alert
Amid The Awful News, Some Good Signs
How Negative Interest Rates In Germany Limit Pandemic Economic Damage To U.S.
The Current Economy And Outlook For May And June
To Fight The Financial Crisis Spawned By The Coronavirus, The Fed Is Utilizing Powerful New Tools
Financial Planning For The Long Run Amid The COVID-19 Epidemic
Business Owners: Paycheck Protection Program Update
Business Owner Alert: Paycheck Protection Program
Amid The Coronavirus Crisis, Nine Tax And Investment Tips
© 2020 Neiman & Associates Financial Services, LLC | 22 Mill Street, Suite 303, Arlington, MA 02476 | All rights reserved
P: 781-641-5700 | F: 617-812-2594 info@neimanonline.com |
Disclosure | Contact Us