The economics of a graying world (Vanguard)

Interesting perspective and much more positive than what generally gets said:

https://personal.vanguard.com/pdf/ISGDEMOG.pdf

 

Might just move into a globally diversified portfolio of hospitals and retirement homes.

 

Personally or merely your money?

 

Would make for an interesting international holiday.

 

Australia seems to be quite different from other developed countries in this regard.

High population growth and relatively young skilled migrants making the population profile more attractive than elsewhere.

Should be helpful for ASX long term. (That’s what my confirmation bias tells me anyway )

 

https://www.smh.com.au/business/com...with-corporate-australia-20191017-p531nh.html


Why Australia appeals
So what is it about Australia that appeals to Japanese companies, given we are a nation with a much smaller population, a much thinner population density, in a different hemisphere that speaks a different language? And why Australia when Japanese companies could be investing elsewhere?

A lot of the markets in Australia are oligopolistic. So if you want to make a big investment you can pick up one of the top three players.

"There's two aspects of it," Williams says. "The Japanese companies are in a market of an ageing population, a decreasing population. So the demographics mean that if you've got consumers, whether they're buying financial services or housing, you're going to need to find new customers."

At the same time as the Japanese population declines and ages, Australia's population is rising due to immigration and natural increases. The net result is a growing Australian market.

In addition to this Williams says that in some cases prices for goods paid by consumers are relatively high in Australia, which usually means higher margins."A lot of the markets in Australia are oligopolistic. So if you want to make a big investment you can pick up one of the top three players," he says.

Williams also cites Australia's rule of law, a record of economic growth and a history of good political relations between the two countries as important factors.

Japanese companies interested in investing in Europe have to contend with a lot of different cultures and languages. But in Australia, Williams says, they are buying into a single market