Demographic Cliff

I just finished reading the book The Demographic Cliff by economist Harry S. Dent. He argues that 2014-2019 will be a time of great deflation, not inflation, as most other economists seem to think. This is because of demographics, that we have a much smaller generation following a large generation of Baby Boomers. In addition, immigration has been steadily decreasing over the recent few years, so population as a whole will start to decrease.

He makes some very compelling arguments for the types of real estate to purchase over the next few decades, based on when the Baby Boomers mature and retire. This is still a good time for apartment rentals, through about 2018. Vacation homes and dream homes are also a good investment right now, according to Dent, but shifting to investment in nursing homes and assisted living facilities as the Boomers age into retirement.

WorldVentures recently featured Dent as their keynote speaker at their last national event, primarily because of his belief in network marketing and direct sales. He feels that business will need to become more efficient in a deflationary environment, and so companies that do not require extensive layers of marketing will be better-positioned to thrive.

It is a fascinating book on demographic trends around the world that will affect international economies, and I highly recommend it for your reading list.

Happy Investing!