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I'm not the person you're replying to. But actually I've been getting quite concerned about this for some time. Mostly due to the shrinking world demographics
by Enginerrrd 1y ago
I'm not the person you're replying to. But actually I've been getting quite concerned about this for some time. Mostly due to the shrinking world demographics on the horizon. Overall growth is slowing and in most developed economies it will be shrinking. Also, increasing wealth inequality tends to lead to lower overall GDP so if that trend continues I expect lower aggregate growth as well.
I think there is indeed a strong possibility that we may see very poor inflation-adjusted growth from an otherwise reasonable and diverse investment portfolio.
Ultimately, the recipe for growth will just not be so simple in a world economy with a dwindling population. Thats a VERY unique situation so a lot of historical wisdom regarding investments I think may not bear fruit like it did in the past.
My approach to mitigate this is two-fold, first I'm trying to be even MORE diversified. I have investments spread out over domestic and international ETF's, real estate, and I work a public sector job with a public pension. In addition, while aggregate growth may become lackluster, certain industries will still do well. Ive run businesses before and I'm looking to start another business in a very well-targeted industry to add an additional potential revenue stream well into the future. And the second prong of my approach is to increase my savings rate much higher than historically safe targets.
I think there is good reason to be concerned about this and it has very little to do with the current market turmoil. (Although there are some indicators of trouble in that too)
- smallmancontrov 1y agoOr AI takes off so that labor becomes worthless and owning things is all that matters and labor gets gaslight that it's a them problem until capital has built a big enough army of murderbots to put down anyone who says the emperor has no clothes. I'm hoping for something inbetween the apocalyptic possibilities.
- grogenaut 1y agosomeone needs to weld those murderbots, or pick up the little piece of scrap keeping the welding bot from making more murderbots, or to take over welding when the murderbots all stop working and start watching Sanctuary Moon 24/7
- paulryanrogers 1y agoEven if murderbots don't work out, we're only a few sheriffs or prosecutors away from seeing Pinkertons deployed against any effective strikes. Based on how the rule of law is going, maybe we're already there.
- ghaff 1y agoOne of the things I'm very happy to have is a pension from a very long-ago job that I doubt I gave more than a couple passing thoughts to at the time (as well as another less-insulated annuity that is nonetheless in a very well-funded/managed institution.) In any case, being very cautious about anything near or even mid-term.