Of course, one can always try to estimate a fundamental value for stocks and other assets - I will discuss some possible indicators of fundamental value and overvaluation in a moment. But there is the additional difficulty that the prices of equities and other assets are set in competitive financial markets, which for all their undeniable foibles are generally highly sophisticated and efficient.
It is estimated that the number of people of working age for each person aged over 65 will halve from around four currently to just over two in 2050.10 This will require increases in expenditure in areas such as pensions and healthcare.