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Demographics paint grim outlook for equities

The historically strong correlation between demographics and the stock market could make this the most depressing market outlook piece we’ve ever written.

This chart displays the work of two economists, Zheng Liu and Mark Spiege, from the San Francisco Federal Reserve. Their study noted an extremely close relationship between the average age of the U.S. population and the price-to-earnings (P/E) ratio of the S&P 500.