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  We have heard a lot about the squeezed middle over the past few years.  For the most part, the statistics have focused on the fact that average income have been stagnating (or declining) in both the U.S. and Canada. A close look at the numbers reveals that the number of middle income earners in Canada is shrinking. Thing is, I'm not exactly sure that's as dire as it sounds.
It is about Europe this week – yes again – or then again maybe it won’t be. Here’s where we are: the situation as regards Greece is not getting any better, and there is a realistic chance that, everybody’s efforts (and money) notwithstanding, they are going to exit from the Eurozone. So yes, it is a tricky time for European markets, which is to say global ones too.
Just took a look at today's release on employment data from Statistics Canada and was underwhelmed by the data.  Looks like Canadian employment is rising, but not really rising all that fast.
Here's a quick quiz - which would you rather do: 1) Live in poverty or 2) Live with your spouse?  A lot of baby boomers seem to be choosing (1), although they may not actually know it.  Trouble is, boomers are ending their marriages in droves, and splitting up what are really very inadequate retirement assets.  So just when it seemed that the baby boomers could not make the dream of retirement even more elusive, they have apparently found a way to do so.
Here's an interesting item from on a possible softening of China's one-child policy.  Faster population in China will not necessarily be the salvation of that economy, and faster economic growth from China will not necessarily be the salvation of the world economy - but it would at least be a start.
Last time, I talked about who the middle-young ratio (ratio of 40somethings to 20somethings in the population) correlated with financial market activity in the U.S. and Canada. A population with a lot of 40somethings poured money into the stock markets through the 1990s, then a slightly older one held back a little on equities. The demographics certainly are not the whole story behind why the markets dipped over the past few years, but they were most certainly a contributing factor.

Aging population – market time bomb?

  Okay, that’s a sensationalistic way to put it, but that’s certainly one of the fears people have about an the shifting demographics in North America. Last time around I looked at how portfolio size tends to trend lower as people go past 65. All things being equal, the older the population gets, the more money that is going to be pulled out of the market. Question is, at what point does the ‘market time bomb’ thing go from sensationalism to reality – or does it?
This is the first in a series of blogs about the way that demographics are going to affect your investments. Yes, I know there has been a lot written on the topic, and most of us know the basic theory. The boomers poured a lot of money into the markets over the past couple of decades, and they made the markets go up. Now they are getting old (sorry if that term offends anyone, but the first wave of boomers is cashing in their pension checks as we speak) and they are going to be pulling the money out of their retirement accounts. This will make the markets go down. Really? Is it as simple as that?
I am fascinated by all the reaction to the Tiger Mom book. You know the one, or maybe you've missed the fuss so far. Battle Hymn of the Tiger Mother (Penguin Press, 2011) by Harvard Professor Amy Chua is the story of how one mom, the American-raised daughter of Chinese-born parents, decided to raise her own children using 'Asian' rather than 'Western' parenting strategies.