According to US NCOA (National Council of Aging), with seniors living longer and more active lives, and with more than 77 million baby boomers turning 65 at a rate of 10,000 per day, the United States is experiencing historic growth in the 65-plus demographic. This growth is pressing communities to think differently and more broadly about a whole host of issues: housing, transportation, social services, cultural
offerings, and health and wellness programs, to name just a few.

By 2030, 1 of every 5 people in the United States — or 20 percent of the nation's population — will be age 65 or older. 

According to Census.gov, statistics show the facts and the importance of such factor, population aging, in investment industry and steady transition from enterprise to defensive investor as a result of risk profile changing which maybe underestimated.

Enterprise investors are information motivated traders which their analysis are conditional and expecting returns more than normal which may not be suitable for people in upper stages of life, as their problems may get more severe. The financial system is there to solve people financial problems.

Enterprise investment managers the way of thinking is something like, If it happens, if it's going to work, then I will have a tour of Japan in mind for you.

Education levels are increasing among people ages 65 and older in 1965, only 5 percent had completed a bachelor’s degree or more. By 2018, this share had risen to 29 percent. I am not telling education could guarantee the success in investments, Sir. Isaac Newton was not. But it could be considered as a pessimistic factor by those active investment managers and funds which are the followers of Wall Street think tank.

Bohemian Rhapsody
Formulas work. I love formulas.
"I'm in love with my car" by legendary Queen.

Now the question is, does equity valuations and setting price targets based on whatever pessimistic thinking, rules or formulas could change the trend or even boost pivoting towards active investment without paying attention to the other side of equation?

Keep It Simple: 11 Rules for Equity Valuations by Paul McCaffrey is a good squeeze without the forbidden fruit.

Not only the US community but other ones with increasing rate of aging are rationally more Graham centric. It is not about valuation methods and formulas which worked in past or patterns in huge quantities of data found by analysts in the h7ope that it works out.

Omid Shahraki
Founder
IF1-IFoundationOne
bit.ly/2WxHpzE_IFoundationOne