Tap the Power of the Rising Billion through Adventure-Investing
Too many investors shortsightedly scramble around trying to find high growth opportunities right where they are, without making the often-enjoyable effort of broadening their horizons by exploring new places to invest.
And on one hand, I don’t blame them. The United States, for example, still retains a few bastions of economic progress. Among them: agriculture, biotechnology, computer innovation, alternative energies (like shale and natural gas), among other industries. These will ultimately lift the tide for all boats.
On the other hand, many investors are ignoring high growth opportunities in precisely the areas that have the fastest growth rates. Today, with the help of Chris Mayer, I’d like to tell you about those areas: how they’re coming to be, how you can profit from them. Not to mention, they’ll make your life more interesting. All the while, your neighbors will probably never have even known these opportunities exist.
I’m talking about emerging markets. Indeed, the distinctions between “emerging markets” and “developed markets” are starting to disappear. This is something that our ex-corporate banker, macro analyst, and micro investor Chris Mayer has pointed out:
“Emerging markets make up 10 of the 20 largest economies in the world. India is bigger than Germany. Russia is bigger than the United Kingdom. Mexico is bigger than Canada. Turkey is bigger than Australia. These are things that I think would surprise the casual observer of markets, rooted in a Western view of the world as it was.”
He continues with a staggering claim… “One is to look at simple liquidity. Not that long ago, the value of IBM shares changing hands in a single day in New York were worth more than all the shares that traded hands in Shanghai or Bombay on a given day. No more.”
This ought to make a lot of people nervous about the United States dominance as an economic and military power, but history will show that this is a “correction” to the norm.
Chris makes the trend clear in his book World Right Side Up:
“Since the Industrial Revolution, the Western world–mainly the United States and Western Europe–has vaulted well ahead of everyone else. Traditionally wealthy economies, such as China and India and parts of the Middle East, were left far behind. The Western world dominated–in manufacturing might and in military power, especially.
This gap probably reached its apex sometime in the 1950s. According to Power and Plenty, a good reference book on trade, the Western world (excluding Japan) represented 90 percent of the world’s manufacturing output as late as 1953. The United States bestrode the globe as Tiger Woods once lorded over golf. America’s economy alone was nearly half of the world’s industrial output.
But things started to change in the late twentieth century. The gaps narrowed. And these trends continue to unfold in the present. My thesis is that such narrowing of the gaps will continue for decades. This will be the most important long-term investment theme of the twenty-first century.
I call it ‘the world right-side up” because it is, in my mind, a more natural world, more the way the world ought to be. It’s a Western conceit to think that the current technical, economic, and military superiority of the West is normal. When you look at the history of our planet over a longer time frame, the dominance of the West is a relatively recent affair.”
Mundus vult decipi, ergo decipiatur, as the Latin saying goes.
“The world wants to be deceived, so let it be deceived.”
Just don’t forget to take advantage of it by putting your knowledge to the test.
Thinking of yourself as a global citizen and investor is a sure way to survive in these times.
If you feel like it’s too far outside of your comfort zone, I’m afraid that the post-2008 pessimism may have gotten the best of you.
Just consider how only one third of the 311,591,917 people in the United States have passports (those people will never know of the opportunities you can discover)…
With enough money earned and freedom achieved, you could experience the exquisite joys of travelling — the romance of different cultures and peoples — and by the time you come home, you could have more money than when you left. Such are the thrills of adventure-investing.
Of course… the government may not want you to leave.
Perhaps this is why more and more people are getting passport cards… instead of passport books…
The U.S. Passport Card can be used to enter the United States from Canada, Mexico, the Caribbean, and Bermuda at land border crossings or sea ports-of-entry… but cannot be used for international air travel.
The cards were made available to the public beginning in July 2008. The rationale from the Department of State being… “designing a card format passport for wide use, including by air travelers, would inadvertently undercut the broad based international effort to strengthen civil aviation security and travel document specifications to address the post 9/11 threat environment.” [Federal Register Volume 71, Number 200 (Tuesday, October 17, 2006)]
As a result, the number of passport books issued by fiscal year is actually lower in 2012 than in 2008.
As the Daily Reckoning’s Eric Fry says, “Capital flees from abusive relationships and seeks out environments where it can be fruitful and multiply”.
In our opinion, if you got caught up in the U.S. housing mess, you’ve probably been abused too much already. But you’re not the only one, and that’s a good thing.
Tomorrow, I’ll tell you about how some of world’s most impoverished people are making an unprecedented entrance into the global marketplace. In the process, they’re already skiping entire technological generations and birthing whole new industries.
Tap into their power, and you’re guaranteed to earn gains from rock-bottom lows to heights that surpass industries even in developed countries like The United States.
They’re called, “the Rising Billion”.
See you tomorrow.
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