Quote:
Originally posted by Colin@Apr 18 2004, 08:25 AM
If you spotted a correlation, aren't you already looking at the data?
Anyway. here's a chart of the US median from 1860 and projected to 2050.
http://iucar.iu.edu/geninfo/demo/medage.html
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no, I wasn't looking,
it was just a pure hunch and your chart is confirming it.
now...take a look at
which is a chart of interest rates over the last 25 years.
interest rates are inverse with average age of population.
I _think_ the reason for it is:
when we are young, we taking more risks, invest in stocks but with age,
we are getting more conservative and looking for ways to lend money instead of investing in the industry.
there is abundance of money in USA and with population getting older, the supply of money to borrow will only increase, thus preasure the interest rates which are the PRICE of borrowing money,
supply and demand.
With China supplying cheap labor and finished goods,
the inflationary preasures are in check.
resume:
buy quality bonds on the dips, collect the interest and lock in longer terms.
does it make sense?