iStock_000000106954XSmall AgingJust saw this guy Ajay Kapur, global strategists from Mirae Asset Securities on CNBC talking about this ratio of middle aged (40s) divided by young people in their 20s, named after the celebrities Ashton Kutcher and Demi Moore, whose ages are about 15 years apart. People in their 40’s have a lot of cash relatively speaking, and they take on more risk and hold a higher part in equities for their retirement savings. Ajay supposedly found that countries where this ratio is rising, equity markets are rising, as Japan did in the 80s for example, and then fell in the 90s as the ratio fell again, while in the US it rose in the 90s , peaked in 2000, and will continue to fall until 2015. In the emerging markets the ratio is rising right now.

Countries with the worst Demi-Ashton Ratio are:

  • Switzerland
  • Chile
  • US (which is in a secular bear market, but cyclical bull market according to Ajay)
  • Netherlands
  • Australia

Countries with the best Demi-Ashton Ratio are:

  • Japan (surprisingly has a high Demi-Ashton Ratio, with a high number in their 40’s, and low number in their 20’s, as not many kids were born in the though times between 1989-1999)
  • Russia
  • Hungary
  • Greece
  • Poland
  • Spain
  • Turque

Ok. Any other ratios I need to consider for my next investment?

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