Demography, price-earnings ratios – and the PP
The Money section of the weekend's FT - yes, a regular read for me, though usually as a bit of financial anthropology more than anything else - carried a piece by Norma Cohen which suggests that the investment growth of the late C20 will not be recovered for a long time, if at all. The reason for this is the change shape of Western populations: the passage of baby-boomers from middle age into retirement, and the shrinkage of the youth population. The proportion of people aged 65+ in the UK has risen to 17%, and is projected to go up to nearly 25% in the next two decades. Conversely the 35-54 group is declining. This…
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