2. The World is Getting Smaller (and More Prosperous)
A Growing Global Middle Class = Potential for Increased ConsumptionSolid bars show current consumption of cars, cell phones and the number of Internet users.
Shaded bars show potential based on population.
As you can see in the chart above, while the U.S. market for cars, computers and cell phones is relatively mature, there is still significant potential demand for these products in China, India and Brazil. This untapped potential for consumerism translates into growth opportunities for companies doing business in these markets.
The Bottom Line
- Globalization has blurred the lines between investing in the U.S. and investing overseas.
- As the growing middle class collectively aspires to the goods associated with the wealth of more developed nations, this increases global consumption, drives global trade, produces investment opportunities and drives stock markets.
- Speak to a financial advisor for help taking advantage of an increasingly global economy.
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Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size and lesser liquidity.
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