- An aging population diminishes GDP growth and US GDP growth is bound to further decline.
- Fertility rates are at an historical minimum and the labor force participation is falling.
- Corporate earnings growth is correlated to GDP growth.
One of the worries for the stock market apart from interest rates and a slump in commodity prices is baby boomers retiring and selling their stocks in order to fund retirement. As the fertility rate is falling, the worry is that there will be less people standing in line to buy those shares. More →