The “Demographic Dividend” Is Paying Off

After a long search, we found a stock market uptrend that’s still intact. It owes much of its power to the “demographic dividend.”
Regular readers are familiar with the big idea we’ve named, “Asia up, the West not so much.” Unlike Western economies, most of Asia isn’t burdened with parasitic welfare states. Yes… most Asians are poor… But they’re working and saving like crazy to catch up to rich Westerners. This produces a tailwind for entrepreneurs, real estate prices, and stocks. And that tailwind is multiplied by the “demographic dividend”…
Many Asian nations have a large percentage of their population with their most productive working years ahead of them rather than behind them. For example, Indonesia is the world’s fourth-most-populous country… behind China, India, and the U.S. And close to half its population is under 30.
That demographic dividend – along with rich energy and agricultural resources – has produced the chart you see below. While stock markets in the U.S. and Europe are crashing, Indonesia’s market sits near a 52-week high. It’s another chapter in the “Asia up, the West not so much” story.