The age structure of global populations is shifting in an unprecedented way, toward a smaller young-age cohort and a larger old-age cohort. What affect will this have on economic growth, and what are the implications for investors?
The Economics of a Graying World, a new research paper in Vanguard's Megatrends series, finds that these demographic trends will have an overall muted effect on long-term GDP growth. For investors, exposure to various growth and demographic outlooks through a low-cost, globally diversified portfolio offers the best chance for investment success.
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