Harry Dent and his team share a unique perspective on finance, using the power of demographic trends and purchasing power to accurately identify and forecast economic and market boom and busts.
Knowing what consumers are going to buy next (purchasing power) or what they will stop buying soon is the most critical tool to forecast what is to come. This is the best way to protect one’s investment portfolio, maximize returns, and make smart business and financial decisions.
While most economists focus on short-term trends, policy changes, technical indicators, elections – things that are volatile and unstable – the Dent Research team focuses their research on long-term demographic trends and cycles.t should
This includes generational trends, human behavior patterns, spending cycles and more. All, elements of demographics that have demonstrated themselves over hundreds (even thousands) of years to be consistent, predictable and measurable.
Demographic trends help determine the timing many key economic factors. When is the economy going to boom and bust? When do we have inflation, falling inflation or even deflation? These things help us focus on more specific predictable consumer spending patterns.
With this research, we learn when consumers are going to spend, from cradle to grave, and when they will invest, borrow and everything in between.
Many markets are directly influenced by shifts in demographics and the corresponding changes in spending cycles. These are changes we see play out right before our eyes.
From a spending perspective, this includes the decline of the baby boomers. The once, largest generation in history peaked in spending in 2007, sending shockwaves through industries across the board.
When does the average family buy the most groceries in their whole life cycle? Trends in demographics tells us age 42. Why is that? The average parent has their kid at age 28 and it is medically proven that the average child’s calorie cycle peaks at age 14. Add those ages together to find out when a generation of parents will be spending the most, on food for the family.
Besides groceries, when do people spend money on childcare, homes, cars, healthcare facilities, life insurance and cruise ships? We can predict just like a life insurance actuator when the average person is going to die. We can predict everything in from crib to nursing homes.
We also look at the demographics of technology. When do we adopt new technologies? New technologies are what make us more productive workers, raise our incomes and our wealth over time.
This research helps us determine where and when we should invest for our kids’ education and for our retirement. We don’t just invest in one area of the economy because what’s growing is always changing and demographics allow us to predict that.
Where are the most lucrative jobs at any time in the economy cycle for your kids or for you? Where should you expand your business and where should you not? Why did they build schools when baby boomers were out of the school system?
Learn more about how people drive our economy’s booms and busts and how you can use the demographic research on Economy and Markets to predict what the markets will do next.