Demographic deficit and rising cost of capital: the next decade

For most of our lifetimes, the global economy was underpinned by an ever-expanding pool of workers. Propelled initially by the postwar baby boom, this demographic dividend helped foster an ideal environment for corporate profitability and share prices. It is one of the four main excesses of the past 40 years that kept the cost of capital abnormally low − but which are now, we believe, poised to reverse.

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