Springer: “As India surpasses China as the world’s most populous country, questions arise as to whether this demographic shift will lead India to overtake China economically. This paper examines this demographic race beyond population size. Using multi-dimensional demographic projections by age, sex, education, and labor force participation, we show that China’s current apparent demographic travails will not necessarily threaten its leading status relative to India for most of the next half century given India’s disadvantage in educational attainment and very low female labor force participation. India’s young population could provide a demographic dividend later this century, but only if it makes substantial investments in education and increasing women’s labor force participation rates. The demographic race between giants will be determined more by human capital development than simply by total population size.”
NYTimes: “The biggest U.S. airlines make billions of dollars from their loyalty programs and branded credit cards, which some analysts believe are now essential to the businesses…Many analysts say they expect airline loyalty programs to keep growing and evolving. Some airlines are already dabbling in things far afield from travel.”
FT: “Hilton and Marriott are leading a push by global hotel chains into India’s smaller cities, investing in and opening mid-range lodging to accommodate a surge in domestic travel and cater to the country’s price-conscious tourists. Marriott earlier this year took an undisclosed minority stake in Mumbai-based Concept Hospitality, which will work with the global hotel group to expand its room count in India to 50,000 within five years from about 30,000 currently. Hilton wants to grow its footprint in India 10-fold in the next decade from the 60 hotels it has in operation or under construction. Growing wealth among a newly minted middle class and government spending on new highways and airports have spurred wanderlust in the world’s most populous country, but the number of quality accommodations is failing to keep up with demand, said industry experts and executives.”
WSJ: “Dividing your portfolio equally in four asset categories—stocks, bonds, commodities and cash—is a well-balanced long-term diversification strategy for investors to consider, according to Michael Hartnett, chief investment strategist at BofA Global Research. That’s because he and his team say they believe higher inflation and interest rates lie ahead, which will heighten market volatility and create an environment where cash and commodities can outperform stocks and bonds. Each asset allocation serves a purpose during various economic cycles: 25% stocks for growth and long-term capital appreciation during times of economic prosperity; 25% bonds for income and stability; 25% in gold and commodities as a hedge against inflation and for currency risk protection; and 25% in cash for liquidity and safety during market downturns, periods of recession or deflation.”
