HOW DOES POPULATION GROWTH AFFECT THE STOCK MARKET?
It is widely known that the population of India and the world as a whole is ever-increasing. Today, the world population has crossed 8 billion and the highest contributors are India and China (of course!) Let us see how does this population growth affect the stock market.
- As the number of people will increase, the demand for goods and services will increase and the supply will remain the same, initially. This, in turn, will result in higher prices of goods and services, following the general rule of the economy.
- As people will pay more for basic necessities, the money left with them will definitely increase. Due to this, their will be lesser funds available with the common man to invest/trade in the stock market.
- As the birth rate goes on increasing and the death rate goes on decreasing, the investment opportunities in healthcare and financial services will go on increasing. These industries will go uphill.
- As the new Gen Z population will slowly reach adulthood, the technology and automation industry will rise like never before- including the established ones as well as start-ups.
- As the awareness about stock market is increasing day by day, the new born population will slowly but definitely believe more in the opportunities of earning through the stock market. This will ensure that more funds are available in the market.
While we have always been taught that an increase in population is adverse for the economy, we cannot ignore the fact that even this coin has two sides.
We, at Stakeindia, look at every situation and condition in the economy as an opportunity and we know how to use it to the best of our advantage.
Stakeindia is the oldest stock market/share market training institute in Nashik, Maharashtra. We are available online as well as offline.
Get in touch with us at stakeindiainstitute@gmail.com
