Morningstar Magazine - February/March 2014 - (Page 60)

Morningstar Conversation The Economic Implications of an Older World By Paul D. Kaplan People are living longer, but having fewer children. Michael Falk and Laurence Siegel debate the ramifications for global growth. In late 2012, the CFA Institute's flagship publication, the Financial Analysts Journal, published a thought-provoking essay by the research director of the institute's research foundation, Laurence B. Siegel, titled "Fewer, Richer, Greener: The End of the Population Explosion and the Future for Investors" (November/December 2012). Siegel predicted that the world's population would level off and might even begin to decline within 60 Morningstar February/March 2014 two generations (hence, "fewer"), that humanity as a whole would be wealthier ("richer"), and that these improvements in the human condition would provide the means to reverse the damage that industrialization has had on the physical environment and even improve it ("greener"). Siegel's optimistic predictions, however, are not without risks and challenges that must be faced if they are to pan out. While the size of the human population may be leveling off, its age composition is changing dramatically. We are becoming older, but not necessarily healthier. Michael Falk, CFA, a partner with the Focus Consulting Group and the chief investment strategist at Mauka Capital, has been studying global demographic trends and the implications for investors for many years, especially

Table of Contents for the Digital Edition of Morningstar Magazine - February/March 2014

Morningstar Magazine - February/March 2014
Letter From the Editor
Preparing for the Next 50 Years
Morningstar Managers of the Year
Fixing the Trust Deficit
Rethinking the Path to Retirement
Same Old, Same Old
Global Briefs
The Economic Implications of an Older World
Banking on Performance
Is the Affordable Care Act Healing Health Care’s Woes?70
Baxter Has a Positive Prognosis
Leading Fidelity’s Charge for RIAs
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Moving the Goal Post

Morningstar Magazine - February/March 2014