CHART 1: CHINA POPULATION DISTRIBUTION 2015 100+ \ 95-99 | 90-94 It 85-89 Oe 80-84 |) 75-79 eee 70-74 ee 65-69 a | 60-64 ee 55-59 eae wv i 2950-54 Eee 45-49 T*— i —>*£]k—>xx{x—o>coo>7vDv 40-44 | 35-39 Eee 30-34 Tr —— eee 25-29 EEE BEE 20-24 Eee 15-19 ee ee 10-14 | 5-9 a eee 0-4 ee 6% 5% 4% 3% 2% 1% 0% 1% 2% 3% 4% 5% 6% Ee Viale ME |= Female Source: United Nations; World Population Prospects, The 2017 Revision While we consider demographics as an important long-term — in CHART 2, with progressively younger population brackets factor for investing (as discussed in the Third Quarter 2015 _ getting steadily larger, indicating a stable increase in labor force issue of Global Foresight: Investing for the Ages), in the short _ for long-term economic growth. run, it is eclipsed by economic cycles and political changes. For instance, Japan’s and Germany’s economies have each been y Id performing well over the last few years, despite being the oullg saaas second and third oldest countries in the world with the median _ Japan has seen a long, steady economic recovery behind the population age of 47 years (Monaco has the world’s oldest — market-friendly policies of Prime Minister Abe. The U.S. has population at 52 years). However, in the longer run, demo- experienced slow but consistent growth, arguably being driv- graphics factor into economic en more by its culture of innovation growth as consumption declines no and leadership in the tech sector that dramatically in your 50s and 60s ..1n the lo nger run, has led its market's returns. By com- from where it is in your 30s and demog ra oh ics factor into parison, Europe has been plagued ; by infighti d_ rotati - 40s. Health care burdens also @eongmic growth as consumption °Y ‘méenting anc rotating eco increase and presumably need to } ; ; nomic and political crises for most be funded with higher taxes that declines dramatical ly In YOUr 50s of the last nine years. In addition, will eventually weigh on the and 60s from where Itt