A Megatrend is Underway
You’ve heard from us that a global economic acceleration is underway, helping drive the stock market increases we see here in the U.S., as well as stock market increases in many markets around the globe. In the link below, you’ll find an article about Chinese economic growth potential and smartphone usage. Some highlights:
“Four-hundred million Chinese millennials [ages 18 to 34] . . . [this] group [is] larger than the working populations of the U.S. and Western Europe combined.” This is quite a fact, isn’t it? China is already the world’s second largest economy – the U.S. isthe largest. The size of China’s millennial population gives a sense China’s future potential economic growth.
“In 2016, the percentage of 18- to 34-year old Chinese who owned a smartphone was a decisive 94%.” With smart phones, people can find out where jobs and education are, quickly communicate, buy and sell, make payments, etc. To give a sense of the importance of cell phones to the world population, the article quotes the World Bank as stating, “the world’s poorest people are more likely to have access to a mobile phone than a toilet.” Many of you know that my husband are involved with acharity that supports about 4,000 young people in someof the poorest areas of Central and South America. I can share from experience that obtaining a cell phone is a high priority for these youngsters as they reach age 17 and beyond.
The article ends, “China’s millennials have the potential to become the main driving force for global growth for decades to come.” Take a look at the details.
As always, we monitor the global economic landscape on your behalf, keying into potential opportunities and keeping a weather eye out for risks. Our Investment Committee (which has over one hundred years of combined experience) is meeting again overthe coming days to take a “deep dive” into global markets and bring new potential strategies to you.
As always, please let us know your questions. Enjoy your weekend.