The Absolute Return Letter, October 2013: Heads or Tails?

The number of people on planet earth will grow from around 7 billion today to over 8 billion by 2030. At the same time, the old-age dependency ratio in many countries around the world will reach critical levels, creating significant headwinds for economic growth and financial markets across the old world. Meanwhile, almost 3 billion people from all over the world will join the middle classes between now and 2030, a shift which may provide a counterbalance. The outcome is far from clear, however, and that is the topic of this month’s Absolute Return Letter.