Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by John Nelson, financial planner at NelsonCorp Wealth Management. Welcome back, John.
John Nelson:
Thanks for having me, Brandy.
Brandy Auterson-Hurst:
So we’ve been hearing about some changes in global population trends recently. Can you explain what you’re looking at on that front?
John Nelson:
Yeah, absolutely. So we have, and this has been an issue for many countries struggling with shrinking populations over the last number of decades. China is one that we’re focused on here today, and that’s the graphic I have with me just showing the significant change over the years. So if we look back, China’s population growth declining rapidly over the last decades and in the relatively near past has actually been shrinking, and this is significant given that they’re the second-largest economy in the world. The effects that they have there affect everyone and that shrinking population growth might be lower household consumption and a small amount of economic activity going forward, which is the concerning part.
Brandy Auterson-Hurst:
So what might this mean for the investment world?
John Nelson:
Yeah, I think overall it is concerning in some areas. We think maybe less effect on stock and bond markets and more of an effect on commodities and commodity pricing. If you look at oil, metals, building materials, things of that nature, that’s where I think we’re going to see some contraction and the bigger effects on the rest of the world with China’s economy and household productivity shrinking here over the last few decades. So investors just being careful, understanding those dynamics in those areas as they make investment decisions moving forward.
Brandy Auterson-Hurst:
So if you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.