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Investment Megatrends
Book

Investment Megatrends

Wiley, 2006 Mehr

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Editorial Rating

6

Qualities

  • For Beginners

Recommendation

Bob Froehlich is a frequent guest on television shows and, indeed, the level of investment analysis he presents in this book is perfect for that medium. He offers basic information about demographic science; he accompanies this discussion with references to history and economics that even the most committed couch potato will find comfortably familiar and he seasons his fact salad with catchy soundbites and slogans. Then he offers specific stock-purchase recommendations. Froehlich's train of thought is not always clear, and his recommendations sometimes seem off base or even a bit risky, but getAbstract appreciates the accessibility of his analysis and his application of demographic theory. Examples and an appendix listing Web sites increase the book's usefulness. If you're new to investing, start your library with this introduction – but make sure to supplement it with other books for more advanced investors.

Summary

Demographic Trends

Demographic analysis is not merely about statistics. Demographic trends can tell stories and reveal history. The inventor of demographics was a British merchant, John Graunt, who studied the London Bills of Mortality, the city's records of deaths, births and weddings, and in 1662, published his findings in a book entitled Natural and Political Observations Made upon the Bills of Mortality. Graunt's successors took the study of population records much further, but at heart, demographic science depends on the kind of analysis Graunt initiated. The four principles of demographic analysis are:

  1. "Focus on the extremes" – Look for outlying data.
  2. "Cluster the data" – Bring the data together in groups that enable you to interpret it.
  3. "Identify patterns" – Find common elements to support further analysis.
  4. "Draw comparisons" – Look at the data in relation to other data.

In addition, the following three basic elements usually combine to determine demographic destiny:

  1. Fertility – Birthrate. Demographers analyze fertility using records of a particular time period...

About the Author

Dr. Bob Froehlich is vice chairman of an investment company. He often appears on CNN, FOX, CNBC and Bloomberg TV.