Ageing the key to bonds and equities

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Demographics will play an important part in determining the future performance and shape of bond and...

Demographics will play an important part in determining the future performance and shape of bond and equity markets, according to Ken Forman, global investment strategist at Standard Life Investments. The number of people who depend on others for their well-being is growing, and this trend has coincided with the bull market in bonds according to Forman. This is because with a lower proportion of the population in work, the level of saving would need to be higher to meet the needs of those not working. As the dependency ratio (the number of people in the working age group to the nu...

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