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While a falling and aging population would obviously present opportunities, and from many perspectives is a good thing, it is hard to overstate the challenges for investors in a world in which the number of people is actually shrinking. A 2010 Bank for International Settlements paper by economist Elod Takats estimated that demographics would, over 40 years, shave about 1 percent a year off of asset prices. That’s a huge bite out of returns.
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