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International investments have been in tune with the times for 40
years. The emergence of the global economy has been one of the biggest
investment trends.
One continued part of this trend, that can make us all rich, is
reaching a milestone.
The convergence of better travel, better information processing and
better communications merging with a 78 million person population
spurt has caused the global economy to explode. As Boomers mature new
forces are ready to emerge.
Since I am one of these boomers and since my birthday is October, I
found the New York Times article by SAM ROBERTS, "Come October, Baby
Will Make 300 Million or So" enlightening.
The article says:
"If the experts are right, some time this month, perhaps somewhere in
the suburban South or West, a couple, most likely white Anglo-Saxon
Protestants or Hispanic, will conceive a baby who, when born in
October, will become the 300 millionth American."
"Still, demographers do know that the United States, which ranks third
in population behind China and India, is still gaining people while
many other industrialized nations are not. (Japan, officials there
announced last month, has begun shrinking.) Driven by immigration and
higher fertility rates, particularly among newcomers from abroad, the
United States' population is growing by just under 1 percent annually,
the equivalent of the entire population of Chicago (2.8 million)."
There are several interesting facts the article pointed out. Here is
the first:
"Given the demographic changes recorded in the 20th century, the 300
millionth American, born in the same year the first baby boomers turn
60, will be a very different person from the paradigm in 1915, when
the nation's estimated population passed 100 million, or even in 1967,
when it topped 200 million."
As we boomers start to think "retire", a new wave of youth creating
new markets, new opportunities and buying patterns will be thinking
"build, grow, achieve". These new markets will be very different
as
the article went on to show when it said:
"The 300 millionth will be a Mexican Latino in Los Angeles County,
with parents who speak Spanish at home and with siblings who are
bilingual," said William Frey, a demographer with the University of
Michigan Population Studies Center.”
We can compare this with the 200 millionth person who was born in the
late 60's - a white son to middle-class suburbanites in Los Angeles or
New York City. The 100 millionth person was born in the late 1910's,
to a white ethnic city family in New York City or rural family in
upstate New York or Pennsylvania.
I have been thinking about these
growth patterns for some time.
Know one knows how all this will play out in the market place but this
article shows us that this growth is upon us now. There are several
thoughts we can derive from this. First, we boomers may benefit. The
key to unfunded pensions such as Social Security is an ever growing
population. America’s aged will have a leg up on those in Europe and
Japan. Second, this continued growth may make America’s real state
bubble less speculative than it would seem.
Like every era there will be opportunities created by a growing
market. This remains in tune with an expanding economy so Merri and I
look forward to our continued travels and sharing what we find with
you.
Until next message good international investing!
Gary
P.S. Join me with
Thomas Fischer of Jyske Bank to review which markets
and currencies may be strong in the year ahead.
Merri and I are getting settled in our Ecuadorian (old) home which we
will visit during this course. A picture of the courtyard is below.
We have a cup of coffee or herbal tea waiting for you!
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