Here is an article by
By Larry D. Spears, contributing writer for Money Morning entitled:
Long-Term Investing Strategies: Global Demographic Trends
If you've been an investor for more than a few months, you've almost certainly heard the adage "the trend is your friend."
This bit of wisdom has been proven correct so often that it has assumed a place as a universally accepted stock market "rule."
Most of us think of trends as market momentum - a shorter-term manifestation that lasts from a few hours to a few weeks. But there's another kind of trend - one that's both longstanding and quite powerful - that can deliver hefty profits to those who understand its value.
Investors interested in long-term investing strategies can take a close look at global demographic trends.
8 Top Trends to Invest In
When we talk about "demographics," we're referring to the dominant characteristics of the human population in a given region, or of the world as a whole.
A precise listing of all the latest demographic trends is difficult - not because of a lack of research, but because many of the conclusions are skewed by the beliefs of the groups conducting the analyses. For example, environmental concerns often score higher marks in studies done by environmental advocates than in surveys taken by more independent-minded agencies.
In fact, this represents one of the few real risks of trend investing: In the rush to be "first" on a given trend, you may end up jumping aboard a hot new trend that really isn't a trend at all. Still, there are more than enough studies of shifting national and global demographics to crosscheck results and come up with a few emerging and strengthening trends that can't be disputed.
We looked at a variety of reports from government agencies like the U.S. Bureau of Economic Analysis and the National Intelligence Council, quasi-governmental units like the U.N.'s World Health Organization and the International Monetary Fund, several international banks and business groups and some independent institutions like the Pew Research Center, and came up with eight rising demographic waves on which they nearly all agree:
1. The world's population is growing faster than ever - in numerical, if not percentage, terms - and it's getting older.
2. The geopolitical leadership of the world is shifting.
3. The "middle class" is emerging in the developing nations, driving an unprecedented shift of wealth from the West to the East.
4. The population growth and burgeoning middle class is creating a steady rise in demand for energy and consumer products, which will keep prices moving higher.
5. Population growth is steadily magnifying the need for more food and water, which is already generating critical shortages of both in some parts of the world.
6. Human beings continue to be messy creatures, with an ever-increasing need for sanitation and waste-disposal services.
7. Despite major peace initiatives, conflict among the human race continues to persist.
8. And a mushrooming global debt burden stands as a threat to both the world's currencies and its established trade systems.
The economic implications of all eight of these global demographic trends should be fairly obvious - or available in broad terms from other sources, many listed at the end of this story - so we won't go into a lot of detail in defining each trend.
Instead, we'll look at some of the quality stocks and exchange-traded funds (ETFs) that stand to capitalize on these trends and provide potentially solid longer-term results for you and other investors.
Be aware, however, that there are very few "pure plays" targeting just one of the major trends, most of which have implications for industries in a number of fields.