Presentation by Eureeca co-founder and Managing Director, Sam Quawasmi on strategies to anticipate a possible future economic and financial crisis similar to the 2008 financial crisis, and how investors can best prepare for it and withstand it.
The presentation addresses questions such as:
-What is the next financial crisis?
-What can you do to avoid the crisis?
-What investment strategy can best prepare you for the crisis?
Here's all you need to know about becoming an investment and yield hunter!
3. eureeca.com
Increased longevity
Technological and medical innovation means we’re
now living a lot longer:
•In 1950 in the US, 590 deaths out of every 100,000 deaths were attributable to
heart disease. In 2010 that number was 180, a decrease of 70%.
•In 1950 in the US, 180 deaths out of every 100,000 deaths were attributable to
stroke. In 2010 that number was 39, a decrease of 80%.
Source: http://valueofinnovation.org/power-of-innovation/#ref1
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Increases in developing & developed markets
45
50
55
60
65
70
75
80
85
1960 1972 1985 1998 2012
China Turkey UAE Egypt Japan UK
Source: http://countryeconomy.com/demography/life-expectancy
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Increased longevity: key stats
Office of National Statistics: UK women aged 65
can expect to live 20 more years on average;
men 18 years1
1: 2014, UK Office for National Statistics, http://www.ons.gov.uk/ons/rel/lifetables/national-life-tables/2010---2012/sty-facts-about-le.html
7. eureeca.com
Increased longevity: key stats
They also project that up to 2/3 of UK babies born
in 2013 will live to 1002
2: 2013, UK Office for National Statistics projections, http://www.telegraph.co.uk/news/health/news/10511865/Two-thirds-of-todays-babies-could-live-to-100.html
8. eureeca.com
Increased longevity: key stats
Society of Actuaries: There is a 50% chance that
one member of a US 65-year-old couple will live
to 923
3: 2013, Society of Actuaries IAM 2000 mortality tables, updated to 2013 with Schedule G Adjustments. Figures assume a person is in good health. https://www.fidelity.com/viewpoints/
retirement/protect-your-retirement-income
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Longevity’s effect on retirement
More retirees
+
Longer lives
=
More stress on pension and welfare systems
Potentially disastrous economic effects
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According to Larry Fink, CEO of BlackRock — the largest
asset management firm in the world, which manages $4.5
trillion in assets:
“Longevity is the defining challenge of our age.”
The traditional mix of retirement funding from pensions and
personal savings is in the grip of “a systemic crisis that is
threatening not only our retirement systems but also our
economic futures.”
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When will the crisis hit?
The crisis to begin in 8-10 years, when the
generation born between 1946 - 64 is largely
retired but largely unprepared financially
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High-return investments
Kauffman Foundation study of early-stage
business investment in found that1:
•There was average 2.6 times return on the initial investment
•It took 3.5 years from investment for an exit
•There was an average of 27% internal rate of return*
* Must have a diversified portfolio of at least 25-50 early-stage
business investments
1: 2007, Kauffman Foundation, http://sites.kauffman.org/pdf/angel_groups_111207.pdf