The world population reaching seven billion people has gained a lot of media attention over the past several months. While the population rises due to longer life expectancy, there is a parallel growth in the middle class. Certainly poverty still exists in numbers that are far too large but the middle class is expanding quickly.
Most of the growth in middle class standards of living is coming in the Asia Pacific region. The pattern is expected to expand as this chart from the American Funds New World Fund annual report suggests.
Under the assumption that the emerging middle class will increasingly join the global economy as consumers, it’s clear that investing in companies that do business in Asia may be worthy of more emphasis in your portfolio over the long-term.
~ Brooks, Hughes & Jones, Partners in Wealth Management, Tacoma, WA