Here's What Links an Aging Population With Lower Bond Yields

The video discusses the recent plunge in bond yields, linking it to risk aversion and demographic changes. It highlights the increased demand for bonds and the impact on equity markets. The decline in capital intensity and productivity in the US is examined, alongside fiscal challenges, including entitlement spending and infrastructure needs.

What is one reason for the decline in bond yields since 2007?

• Increased risk appetite among investors

• Surplus of bonds in the market

• Decrease in municipal bond yields

• Aging populations leading to higher demand for safer investments

Why might equities remain elevated despite a strong bond market?

• High levels of corporate investment

• Rising interest rates

• Lack of investment by companies and governments

• Increased government spending on infrastructure

What has been the trend in capital intensity in the past five years?

• It has declined

• It has remained stable

• It has increased significantly

• It has fluctuated unpredictably

What portion of the US government's spending is allocated to entitlement programs?

• Approximately one-third

• About half

• Nearly all

• A small fraction

What is a major challenge for the US in terms of fiscal policy?

• Surplus in the federal budget

• Limited funds for investment after entitlement and defense spending

• High levels of private sector investment

• Excessive infrastructure spending