Continuing with the idea of the relationship between demographics and the economy that I’ve been promoting for some time, consider this graph from Deutsche Bank via Business Insider. It puts the ratio of those in their prime income earning years to the number of elders and the ratio of stock market capitalization to GDP on the same graph.
Now it could just be a coincidence. Or, as I’ve been suggesting, there could be a real relationship there. I think even more interesting would be to put the inverse of the dependency ratio on the same graph.
Another at least marginally related factoid. In the most recent BLS employment situation report the sole age group showing a greater rate of employment than previously, indeed, a sharp increase, was those over 65.
