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Lisa Mears O'Connor Benedicte Gravrand, Opalesque Geneva: Lisa Mears O'Connor, Head of Global Macro Portfolio Management at State Street Global Advisors (SSgA), talks about her investment themes and trade ideas for 2015.
Demographic shift
Speaking to Greg de Spoelberch in an Opalesque TV interview about the global macro themes that investors must consider, she says there is an economic trend that has been slow moving, but that is "incredibly important;" namely the demographic shift. We have been seeing it in Japan in the past 15 years, she continues, and we are seeing in Europe too. It is important because it is driving an aggregate demand shock.
As people age, she explains, they tend to consume less and save more, slowing down economic growth on an aggregate level. Which explains slow growth in Japan and Europe, and to a certain extent, the US. That is also why inflation has been so low; economies are adjusting to the lower level of output that is needed, against a backdrop of oversupply.
"It makes for an interesting market environment," she says, "because not all economies are on that same path. So you can play these diverging central bank policies because you still have so much easing out of the BOJ, out of the ECB, because of the magnitude of the demographic shift. So you can take advantage of some of these tren...................... To view our full article Click here
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