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Demographic Changes

This week’s Economist magazine has an excellent article on demographic changes in the world. Japan, South Korea, Italy, and Russia are in the worst shape, with the rest of Europe not far behind. The US is in slightly better shape, but only because of the huge influx of Hispanics and Asians in this country.

China, India, South East Asia, and South America are all growing and moving millions into the middle class. This is a secular trend that will continue for years.

Demographic changes are the driving force behind all investment decisions, either directly or indirectly. The investment themes that focus on the positive demographic trends in the developing world (Ag, Energy, Metals, Infrastructure) have years to run. Yes, there will be short-term pullbacks based upon cyclical factors, but ultimately the direction in these specific industries is up.

More later!

Mark