More and more, we’ve been hearing about how the U.S. economy has pretty good fundamentals relative to the rest of the world.
One reason is because the U.S. has great demographic trends. Earlier, we pointed to the country’s increasing working age population. This is an advantage that a country like China can’t claim since their population is rapidly ageing.
DoubleLine’s Jeff Gundlach also chimed in on demographics. In his latest presentation (If you haven’t seen it yet, you need to), he points to workers per retiree. See the chart below.
Now, make no mistake. Gundlach makes clear that the U.S. ratio is declining along with everyone else, which is troubling for countries Where tax receipts fund entitlements for retirees.
Nevertheless, the U.S. isn’t in as terrible shape as others.
Photo: DoubleLine Funds