Question

In: Finance

. Name a demographic trend that you think will negatively affect the return generated for the...

. Name a demographic trend that you think will negatively affect the return generated for the S&P 500 over the next few years?

Solutions

Expert Solution

Demographic trend that is currently impacting the return of s&p 500 is coronavirus and it is expected to continue for a few more years because of the graveness and the contagion, as well as the fear the global population is encountering for the first time since inception of digitalised stock Index.

Earlier when it outbroke, people were underestimating the intensity of the disease but when it is started to grow and the contagian spread from one country to another another leading to global crisis, the government came in their senses and their started to put the economy into lockdown and that led to crashing of the global market including s& p 500 too because economy is closed and the demand is substantially slowed down.

it has led to a widespread collapsing of economies all across the globe as this is a new way of life because people would be very sceptical about their public behaviour and they would avoid many of the the industries which where their favorites few years ago, so it would lead to widespread collapsing in demand and it may trigger intensified recession which can not just lead to loss of job but it can also lead to loss of life and that would impact the return for the index in coming few years to a very high extent.


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