Research has shown that there is a strong relationship between stocks & bonds returns and the demographics of countries. What is demography? For those who studied geography, demography is the statistical study of human population. A common way to view population is the population pyramid. For Singapore, the population pyramid looks like the following. As it can be seen, majority of the population are age 30 to 50 years old.
The following is the population pyramid of Japan. As it can be seen that there are large number of the population who are above 50 years old. The number of people who are 80 years and above is quite shocking!
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