1: Population collapse threatens pensions
Working age population growth around the world has been collapsing since the late - 20th century. While this might help reduce pressure on resources, it makes it extremely difficult for societies to support retirees in numerous ways, including financially.
The retirement pension system is basically a ponzi scheme, dependent on a combination of good returns and participants contributing new funds. So the collapse of working age population reduces contributions relative to withdrawals, putting defined benefit pension plans at risk. The result: lower payouts for retirees or higher contributions for workers, either of which can be deflationary.
2: Why have stocks performed well? Part I
Despite all the warnings about stretched valuations, stocks have performed very well. The fact is earnings are growing rapidly and are predicted to continue to rise - especially in the US - over the next year.
3: Why have stocks performed well? Part II
US corporations are generating tons of cash. They are using a lot of this cash to repurchase their own shares on the open market, putting a theoretical floor under stock prices. However, if you dig beneath the surface, much of this buy-back data is skewed by the buy-back programs of a few very large companies.
It might seem naive, but I'm wondering if you can clarify. That theoretical floor you spoke of when a company buys back its shares with cash is because of what? I can imagine that buying back shares means fewer outstanding. That would mean lower supply and thus higher price and less price vulnerability to institutional and retail investors selling.