Demographics are the most critical factor in determining long-term market trends, as investment behavior largely depends on age-related patterns

“… demographics are the most critical factor in determining long-term market trends, as investment behavior largely depends on age-related patterns. The report finds that younger adults, form 20 to 39, tend to be consumers, that middle-aged people, 40 to 59, generally invest in shares, and that retirees (60+) are more likely to sell shares than buy them: ‘They seek to borrow in youth, invest in equity and bonds in middle age, and live on this middle-age investment in their retirement.’ The study also holds that the relative numbers of people in each of these three life stages strongly affects market performance.”

Financial Reckoning Day P. 215 Study: By the Cowles Foundation

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