Signal From Noise

Positioning Your Portfolio for the Silver Tsunami: Stock Ideas for an Aging America

News outlets worldwide reacted with concern on Jan. 18 when China acknowledged that its population had shrunk for the first time since 1961. But China is far from alone. The so-called “silver tsunami” will hit most wealthy countries to varying degrees in the next decade or two – among them, Japan, Finland, Italy, Portugal, France, and the United States.

The transition is sure to be accompanied by discomfort and turbulence. Witness, for instance, the millions who took to the streets of France in January and February to protest a proposal to raise the country’s retirement age and ease the burgeoning cost of the nation’s generous pension benefits because of its increasingly large population of older people.

The U.S. population is not shrinking, but it’s heading in that direction. Population growth has slowed since the 1990s. In 2000, the annual rate of population increase was 1.5%. In 2010 it was 0.8%. By 2020, it was basically flat. Consequently, the percentage of working-age Americans is declining as the proportion of retired or elderly Americans increases.

The video in this report is only accessible to members
For any aging country, the policy implications are troubling. A large percentage of working-age people is needed to generate a large enough tax base to fund r...

Unlock this article with a FREE 30-Day Trial!

An FSI Macro, FSI Crypto, FSI Pro, or FSI Weekly subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)