As central bankers and finance ministers gather for the IMF’s annual meetings
in Lima, the emerging world is rife with symptoms of increasing economic
vulnerability. Some of those symptoms, like slowing growth, are obvious and
quantifiable; others, however, are dangerous partly because they are difficult
The retirement of the baby boomers is expected to severely cut U.S. stock values in the near future. Since population aging is widespread across the world’s largest countries, this raises the question of whether global aging could adversely affect the U.S. equity market even further. However, the strong relationship between demographics and equity values in this country do not hold true in other industrial countries. This suggests that global aging is unlikely to create additional headwinds for U.S. equities.